Shell swallows financial hit after scrapping Rotterdam biofuels project

Shell is reportedly going to face a $600 million (€519 million) hit in the third quarter following the scrapping of its biofuels project in Rotterdam.
The oil and gas major had approved development of the 820,000 metric tons-per-year biofuels plant four years ago, but paused construction last year and pulled the scheme completely in early September because it would not have been competitive.
The decision to exit the project is the latest in a series of steps by fossil fuel producers retreating from earlier pledges to expand cleaner energy.
In February, BP announced it would sharply reduce its investment in renewables, while Equinor said it was scaling back its renewable energy ambitions.
Shell also signalled a stronger performance in its liquefied natural gas business, raising its third-quarter production outlook to between 7 million and 7.4 million tons, it said in a quarterly trading update.
The company had previously forecast LNG production of about 6.7 million to 7.3 million tons, the oil major said in July, compared with 6.7 million tons in the second quarter.