Shell says it can make more money from fossil fuels than sustainable aviation fuels (SAF) so it’s abandoning a multibillion-dollar plan to convert much of its European jet fuel production to the greener fuel. “As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive to meet our customers’ need for affordable low carbon products,” Shell renewables boss Machteld de Hann said in a statement. “This was a difficult decision, but the right one, as we prioritize our capital towards this projects that deliver both the needs of our customers and value for our shareholders.” Roughly translated it means that Shell will make jet fuel from North Sea oil instead of waste cooking oil.
Shell became the standard bearer for the net zero aviation fuel movement with its 2021 announcement that it would turn 14 conventional refineries into five low-carbon production sites. The biofuel plant in Rotterdam was hailed as a turning point to achieve the goal of replacing 10% of fossil fuels with net-zero Jet A by 2030 in the U.K. Despite its pivot to the tried and true, Shell insists the future for aviation fuels is biofuels. “We continue to believe that low-carbon molecules, including biofuels, will underpin the future energy system.” Shell paused construction of the Rotterdam facility in July and pulled the pin on Tuesday.
Not really a big surprise. The technology of converting used cooking oils into Jet A is well established, but the economics are pretty uncertain. Spending the kind of money that Shell was facing for this huge project just didn’t make sense in the current economic and political climate.
You need to milk the cow while its still able to stand upright.
Cow with no pulse = No sustainable revenue from sale pf milk…
Here’s another one, Jason. SAF is lipstick on a pig, expensive, scarce, and no real fix for aviation.
I always thought that for SAF to work, we would all have to eat a lot more french fries to keep the airlines flying…
I think you may need bugs to make it work as they have almost no overhead and life is a holiday (if you’re hungry}.
Once bugs get involved, PETA is involved… 😂
Shell needs to stay in business.
Producing a boutique product is expensive, and most operators want to stay in business, too, so demand for an expensive niche product will remain low until governments force its use, at which time the entire market will shrink.
For now, the rainbows will have to suffice to signal Shell’s support of minority markets.
Love your last line….my old company gone woke! But better days ahead for the shareholders by Shell moving on from that niche market!
Well hardy, hardy, har. When some of us industry experts predicted this after multiple glowing AVWeb articles on the biofuel scam, we were vilified. When we will receive an apology and admission we were right? Never.
I hope Shell has also ended the woke rainbow garbage, too? If not, they we be Bud Lighted.
This is not surprising. The single largest issue with biofuels is obtaining sufficient volumes of feedstock at a low enough delivered price at the plant to produce a cost competitive final product. Converting fatty chain molecules to diesel and jet fuel isn’t technically that difficult. But the logistics of obtaining and supplying high volumes of feedstock is.
The market has sorted it out, which is as it should be.
Sadly this will just add more fuel, excuse the pun, to the various carbon credit offset scams available so folks like Bill Gates can continue to fly unabated while loudly claiming a net-zero impact. Don’t get me wrong I’m in favor of GA & business aviation, just not climate imposters.