Shell insists that it paused building work at its 820,000 tonne/year biofuel refinery in Rotterdam “for the right reasons”, even as the airline industry laments the lack of sustainable aviation fuel (SAF) available today.
Speaking during IATA’s World Sustainability Symposium in Miami on 24 September, Shell Aviation president Raman Ojha says the business remains committed to helping the aviation sector’s energy transition, but that work in the Netherlands was paused in July “to assess the situation and begin the journey again”.
That decision – and similar moves from other legacy energy businesses – drew the ire of IATA director general Willie Walsh, who said in Miami: “We should be shining a spotlight on these producers because they have to be part of the solution.
“To see them talk about their commitment to green energy but not deliver on it is very frustrating for the industry.”
Still, despite being unable to comment on when construction in Rotterdam might recommence, Ojha insists Shell is “definitely fully committed” to the aviation sector’s net-zero effort.
And he cites three “right reasons” for the construction pause.
“Number one is we are trying to understand the complexity of construction that we are undertaking,” Ojha says. “We have also taken a pause to identify levers that can help us reduce the cost.
“Three… is to ensure that the SAF we deliver is economically viable.”
His comments came after IATA expressed concern during the symposium about the lack of progress on the development of a global SAF industry, with airline leaders calling on governments to do more to incentivise a ramping up of the sector.
Talking more broadly about the uncertainties faced by energy producers as they consider SAF projects, Ojha highlights revenue certainty as “critical”, alongside technology and policy certainty – all three of which are lacking in what is a nascent industry, he points out.
“If you are not certain it creates uncertainty of investment,” Ojha states, while stressing that the Rotterdam pause was largely driven by a desire to “address the complexity” of construction.
At the same event, the chief executive of SAF producer LanzaJet, Jimmy Samartzis, cited data showing that global SAF production amounted to 158 million gallons in 2023, versus traditional jet fuel consumption of 96 billion gallons.
