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Shell Steps Back from Sustainable Fuel Ambitions, Citing Slimmed Margins

Pragmatism Forces Slowdown of Green Projects As Subsidies Decline, Market Flags Shell is halting its construction on one of Europe’s largest biofuel manufacturing facilities, citing a weak market and renewed focus on stock returns. The Rotterdam biofuel facility will be put on pause for a while, with a reduction in contractors on site, and a slowdown of activity, hopefully cutting costs as Shell’s margins get thinner. Renewables and energy solutions director Huibert Vigeveno said that “temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project.” Those in the industry blame a weakening European biofuels market, where margins have slimmed for renewable diesel and SAF.

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