Cites market conditions (Il Sole 24 Ore Radiocor) - London, 02 Jul - Anglo-Dutch energy group Shell said its subsidiary Shell Nederland Raffinaderij 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 to address project delivery and ensure future competitiveness given current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimise project sequencing, it said.

'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. 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, Shell said it would conduct an impairment review for the project.

Further guidance will be included in Shell's second quarter update note scheduled for publication on July 5, 2024.

Shell took a final investment decision for the planned biofuels facility in September 2021. The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

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(RADIOCOR) 02-07-24 11:39:14 (0311) 5 NNNN