Azernews.Az

By Alimat Aliyeva

The British-Dutch oil and gas giant Shell has officially abandoned its plans to build a large-scale biofuel production facility in Rotterdam, Azernews reports.

In a company statement, Shell explained that it will now prioritize investing capital into projects that better align with customer needs and deliver greater value to shareholders.

The Rotterdam biofuel plant, which was expected to produce 820,000 tons of biofuels annually, had already been suspended last year amid shifting market conditions and strategic reassessments.

Despite the cancellation, Shell’s shares experienced a modest gain of 0.1% during Wednesday’s trading session. Over the course of this year, the company’s stock value has risen by 10.3%, reflecting investor confidence in its broader energy transition strategy.

Industry analysts suggest that Shell’s decision reflects the increasing complexity and cost challenges associated with large-scale biofuel projects in Europe, especially in light of evolving regulations and competition from emerging renewable energy sources such as green hydrogen and offshore wind.

Shell is reportedly redirecting its focus towards expanding its renewable energy portfolio, including investments in hydrogen, electric vehicle charging infrastructure, and carbon capture technologies — signaling a strategic pivot toward a lower-carbon future.

This move highlights the ongoing transformation within traditional oil majors as they seek to balance shareholder returns with growing environmental responsibilities.