13th June 2025
Last year Shell paused work on its biofuel plant in the the Netherlands. This project was to have become one of Europe’s largest biofuel plants producing SAF and renewable diesel. Weak market conditions were apparently to blame (basically a situation where the global supply of biofuels exceeded current demand and producers wouldn’t or couldn’t reduce the prices to boost demand). At the same time BP also paused two biofuel projects in Germany and the U.S. (1)
One question to ask is how can funding be provided for long term projects when companies are focused on short term profits? Is this where governments should step in either with subsidies or with legislation that builds long term certainty around how energy needs are to be met? And if so, who is going to guide government policy – powerful fossil fuel companies or scientists?
Another question is whether alternative biofuels are the right solution for the need to reduce global carbon emissions? And are fossil fuel companies pursuing these alternative fuels that can be used interchangeably with fossil fuels, being used as a way of keeping the market for fossil fuels open?
Here it should be noted that Shell’s CEO, Wael Sawan, has stated that Shell’s current objective is to shift focus from renewables to high-profit oil and gas projects so that Shell can exploit the higher global oil and gas prices that still persist following Russia’s invasion of Ukraine. (2)
- https://www.reuters.com/business/energy/shell-pause-construction-dutch-biofuels-facility-2024-07-02/
- https://www.theguardian.com/business/article/2024/jul/02/shell-to-pause-construction-of-huge-biodiesel-plant-in-rotterdam
The Green Tau 