Shell has said that it will temporarily pause on-site construction work at its 820,000 tons per year (tpa) biofuels facility located at the Shell and Chemicals Park Rotterdam in the Netherlands to address project delivery and ensure future competitiveness due to weak market conditions.

Therefore, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimize project sequencing, Shell said in a press release.

“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.”

Shell announced the development of the plant in September 2021 and was originally planned to start production in 2025.

The facility at its chemicals complex in Rotterdam aimed to produce sustainable aviation fuel and renewable diesel made from waste.