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Shell makes final decision on fate of billion-dollar plant with troubling implications: 'Insufficiently competitive'

The move marks another major retreat from renewable energy projects by one of the world's biggest oil companies.

The move marks another major retreat from renewable energy projects by one of the world’s biggest oil companies.

Photo Credit: Depositphotos.com

Shell has officially abandoned one of Europe's most ambitious efforts to turn waste into low-carbon jet fuel, raising fresh concerns about the oil giant's commitment to renewable energy, per The Guardian.

What's happening?

Shell has scrapped plans to complete a massive biofuels facility in Rotterdam, the Netherlands, that was once set to become one of Europe's largest converters of waste into green jet fuel

The company began construction in 2021 with hopes of producing 820,000 tonnes (904,000 tons) of biofuels annually, around half of which would have gone toward sustainable aviation fuel, per The Guardian. 

After pausing construction last year over technical challenges, Shell has now confirmed the project is dead, citing that it would be "insufficiently competitive" to deliver affordable low-carbon products.

Why is this important?

The move marks another major retreat from renewable energy projects by one of the world's biggest oil companies. 

Aviation currently accounts for about 3% of global carbon pollution, according to the International Energy Agency, and experts widely agree that cutting those emissions is critical if the world hopes to slow down rising temperatures. 

Sustainable aviation fuel, made from waste cooking oil and animal fat, is considered one of the most viable near-term solutions, yet supply remains limited and costs stay high. 

Scrapping the project is another example of fossil fuel giants prioritizing short-term profits over long-term responsibility.

What's being done about it?

Despite Shell's pullback and accusations of the company participating in greenwashing, demand for alternatives to fossil fuel-based jet fuel continues to rise. 

Airlines including United and Lufthansa have signed major agreements to purchase sustainable aviation fuel, while the European Union has adopted mandates requiring a growing share of aviation fuel to come from renewable sources in the coming years. 

On an individual level, consumers can also help curb aviation pollution by choosing trains or buses for shorter trips, cutting back on unnecessary flights, and supporting policies that invest in greener transportation infrastructure.

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