10:40 AM EDT, 04/08/2025 (MT Newswires) -- (Updates with BP response in the fourth and fifth paragraphs.)

BP (BP) is putting on hold a project to expand biofuel production at its oil refinery in Castellon, Spain, Bloomberg reported Tuesday, citing a person familiar with the matter.

The source told Bloomberg that the British oil and gas giant paused production at the site because of lower-than-expected growth in the biofuels market.

Sustainable aviation fuel had been part of a 2 billion-euro ($2.2 billion) decarbonization plan at the site, according to the report.

Contacted by MT Newswires, a BP spokesperson declined to comment directly on the report although he said BP had indicated earlier this year it would likely scale back on building new biofuels facilities while possibly ramping up co-processing elsewhere.

BP has already paused work at a proposed biorefinery project in Australia and was reviewing others, the spokesperson said, adding the company expects to advance only one proposal to a final investment decision by 2027. It has not yet decided on a site, the spokesperson said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 27.46, Change: +0.28, Percent Change: +1.05