Shell representatives canceled two Singapore biofuel and base oil projects on Thursday.
In an email to Reuters, the company was abandoning a biofuels operation and a Singapore Group II base oil refinery.
“We will distribute base oil, lubricants, and biofuels to Singapore and the vicinity.”
In late 2021, Shell said it was studying a 550,000-ton sustainable aviation fuel (SAF) project at Singapore’s Bukom Island to supply Hong Kong International Airport and Changi Airport.
The project may supply sustainable fuel and naphtha feedstock for petrochemicals. A final investment decision was expected in early 2023.
An industry source said Asian airlines are not forced to use SAF, unlike Europe and the US, and passengers hesitated to pay extra for the fuel.
Shell’s 820,000-square-meter Rotterdam biofuels facility will generate 2 million SAF by 2025.
Decarbonizing aviation is challenging.
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