bp PLC has halted plans to build a biofuels plant in Rotterdam, continuing a retreat from earlier renewables ambitions as the company shifts capital back toward oil and gas investments.
A bp spokesperson confirmed to Reuters Sept. 22 that the Rotterdam project—once part of a broader goal to produce 100,000 b/d of biofuels by 2030—has been shelved amid weak demand and a sharpened focus on profitability. In February, bp announced it would prioritize higher-return oil and gas projects after years of underperformance following its 2020 renewables push.
bp has since halted or paused biofuels projects at Kwinana in Australia, Lingen in Germany, and Cherry Point in the US, leaving Castellon in Spain as the only potential standalone site for future development.
The company has set a 15% investment return hurdle for biofuels projects, aligning it with upstream oil and gas targets. In its latest earnings report, bp noted stronger-than-expected downstream performance helped it beat analyst forecasts, with cost reductions of $1 billion across the downstream segment since 2023 and a 50% increase in first-half retail earnings.
Shell PLC, which had also planned a Rotterdam biofuels plant, announced this month it will not resume construction, citing concerns over long-term competitiveness.
bp’s remaining biofuels business centers on BP Bunge Bioenergia in Brazil, producing 50,000 b/d of ethanol from sugarcane, along with co-processing at existing refineries.
