Sept 3 (Reuters) - Shell will not resume

construction of a biofuels facility at its Shell Energy and

Chemicals Park in Rotterdam after an in-depth evaluation found

it would not be competitive, the company said on Wednesday.

The project's construction was paused in July 2024 due to

weak market conditions. Shell in September 2021 had approved the

development of the plant to produce 820,000 metric tons per year

and had planned to bring it online in 2025.

"As we evaluated market dynamics and the cost of completion,

it became clear that the project would be insufficiently

competitive to meet our customers' need for affordable, low

carbon products," said Machteld de Haan, Shell's Downstream,

Renewables and Energy Solutions President.

"This was a difficult decision, but the right one, as we

prioritise our capital towards those projects that deliver both

the needs of our customers and value for our shareholders," Haan

said.

Along with other major oil companies, Shell has been

shifting away from renewable projects and back to its

traditional expertise of fossil fuel production.