Yahoo Finance Shell reveals $2 billion in Rotterdam and Singapore write downs
Shell revealed the cost of the delays to its giant Dutch biofuels plant today, offering fresh insight into the extent of the latest blow to its push into green energy.
Construction of the Rotterdam biofuel facility – which will process used jet fuel into the environmentally friendly energy source – is on hold due to what Shell has previously referred to as weak market conditions.
The setback will cost it up to $1 billon (£780 million).
The Rotterdam plant has been key to Shell’s plans for the green energy transition and it has faced criticism from environmental groups for backtracking on its decarbonisation plans. Rotterdam was approved in 2021 and has been behind schedule due to technical problems.
It was supposed to start production of up to 820,000 tonnes of fuel a year in April and will now start up in the later part of this decade, according to a separate update issued earlier.
Shelll also wrote down the price of a Singapore chemicals facility it is selling, by up to $800 million.
Shares in the UK’s second most valuable company were down almost 6p at 2895p, among the biggest fallers on the FTSE 100.
