October 8, 2021 — Royal Dutch Shell announced a decision to build a biofuels facility at Shell Energy and Chemicals Park in Rotterdam, the Netherlands. This biofuels facility will have the capacity to produce 820,000 tonnes of biofuel annually. After being constructed, this plant will be one of the largest in Europe to produce sustainable aviation fuel (SAF) and other biofuels from waste. Shell has a goal of reaching net-zero carbon emissions by 2050, and this facility will help the company with this target. The facility is anticipated to begin production starting in 2024. It will produce low-carbon fuels from waste such as used cooking oil, animal fat, and other residues. SAF could account for up to half of the 820,000 tonnes of renewable fuel produced annually.
After announcing their facility in Rotterdam, Shell also announced plans to produce 2 million tonnes of SAF by 2025. Shell expects their SAF, which will be produced by the waste products mentioned above, to reduce emissions by up to 80%. Currently, SAF accounts for less than .1% of global aviation fuel demand. A major hurdle in the production and usage of SAF is the cost, as it is around 8 times higher than conventional jet fuel. Shell is hopeful that other companies will follow their lead with similar low-carbon fuel production plants and goals.
More information on the Rotterdam plant can be found here and information on Shell’s production announcement can be found here.