Shell halts biofuel projects in Singapore
Decision based on lack of demand for sustainable aviation fuel in Asia

Shell has decided not to proceed with two projects in Singapore aimed at producing biofuels and base oils. This was confirmed by a spokesman for the company on Thursday. In an email to Reuters, the company said, "We can confirm that we will stop exploring two projects - a bio-fuels unit and a Group II base oil plant in Singapore." However, Shell will continue to supply base oils and lubricants as well as biofuels to its customers in Singapore and the region.
In late 2021, Shell had announced that it was studying a sustainable aviation fuel (SAF) project on Bukom Island in Singapore. The project was expected to have a capacity of 550,000 tons per year and supply major Asian hubs such as Hong Kong International Airport and Singapore Changi Airport. The final investment decision for the project, which was also to supply renewable diesel and bionaphtha feedstock for petrochemical production, was scheduled for early 2023.
Unlike Europe and the United States, there is no requirement in Asia that airlines use SAF. An industry insider said customers are not willing to accept higher costs for the fuel.
Shell is currently building a biofuel plant in Rotterdam with a capacity of 820,000 tons per year and aims to produce about 2 million tons of SAF by 2025. Aviation is one of the most difficult forms of transportation to decarbonize, accounting for 3% of global CO2 emissions.
