Energy giant Shell to take up to a $2 billion impairment hit on Rotterdam, Singapore plants

Shell suspended construction at its Rotterdam biofuels facility due to weak market conditions, aiming to address project delivery and ensure future competitiveness12. The pause allows Shell to assess the most commercial way forward for the project and control costs.

Shell's $2 billion impairment hit is mainly linked to its Singapore and Rotterdam plants. The company temporarily suspended on-site construction at its 820,000 metric tons a year biofuels facility in Rotterdam due to current market conditions, leading to a projected non-cash post-tax impairment between $600 million and $1 billion for the Rotterdam hub4. Additionally, Shell anticipates a second non-cash post-tax impairment of $600-800 million after agreeing to divest its Singapore refining and chemicals plant back in May.