Shell will pause the construction of its Rotterdam biofuels facility, one of Europe’s largest, as it seeks to control costs given the current market conditions. The facility is designed to produce sustainable aviation fuel and renewable diesel made from waste.

The energy major said its Shell Nederland Raffinaderij B.V. subsidiary will temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands.

The aim is to address project delivery and ensure future competitiveness given the current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down. Shell claims this will help to control costs and optimise project sequencing.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

“We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonise,” added Vigeveno. “And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”

Following the decision to pause on-site construction, an impairment review will be conducted for this project.