Shell's Sustainability Efforts Face Major Setbacks in 2025
Oil giant Shell has faced a series of setbacks in its sustainability efforts. In March, it abandoned plans for a sustainable aviation fuel project in Singapore. Meanwhile, the company's upstream earnings will take a significant hit due to changes in Brazil. Shell has also revised its carbon emissions target for 2030.
The cancellation of the Rotterdam biofuels plant, which will result in a $600m write-down, has raised questions about the viability of plants. The plant was deemed 'insufficiently competitive' to meet customer demands for affordable, low carbon products. This challenge extends to sustainable aviation fuel (SAF), which is currently two to three times more expensive than conventional jet fuel.
In the third quarter, Shell's liquefaction volumes are expected to total between 7 to 7.4 million tonnes, up from 6.7 million tonnes in the second quarter. However, the company's upstream adjusted earnings will be impacted by a $200m to $400m hit due to the 'rebalancing of participation interests in Brazil'.
In 2024, Shell revised its carbon emissions intensity target to a 15% to 20% reduction by 2030, down from the previous 20%. This revision comes amidst ongoing challenges in the plants sector and the company's broader sustainability efforts.
Shell's recent setbacks, including the cancellation of the biofuels plant and the revision of its emissions target, highlight the complexities and costs associated with transitioning to a low carbon economy. Despite these challenges, the company remains committed to its sustainability goals and continues to invest in renewable energy and other low carbon solutions.
Read also:
- Tony Hawk's Memorabilia Auction Raises Record $1.2M for Skatepark Project
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
- A power crisis prevails in the Middle East, with the Gulf region potentially offering assistance.
