Shell has revealed it will incur a $600 million loss in the third quarter of 2025 following the cancellation of its biofuels plant in Rotterdam, Netherlands — pushing total related costs and write-downs for the project to about $1.4 billion.

The company had approved the 820,000 metric tons-per-year biofuels facility in 2021 but paused work in 2024 before officially abandoning the plan in September, saying it was no longer economically sustainable.

The cancellation reflects a wider trend among major oil firms pulling back from earlier renewable energy commitments. BP recently announced plans to reduce spending on clean energy, while Equinor scaled down its green energy targets.

Meanwhile, Shell expects stronger results from its liquefied natural gas (LNG) operations, lifting its output forecast to between 7 million and 7.4 million tons for the third quarter — higher than the 6.7 million recorded in the previous period. The company also anticipates better trading performance in its gas division.

Refining margins improved to $11.6 per barrel, up from $8.9 in the second quarter, while Brent crude averaged $68 a barrel. However, Shell’s chemicals business is expected to post a loss, along with an additional $200–$400 million charge due to revised production data from Brazil’s Tupi oil fields.

Analysts from RBC Capital Markets described the update as largely positive, noting operational improvements across Shell’s key divisions despite challenging global market conditions.

The company continues to explore partnerships or asset sales within its chemicals unit as it fine-tunes its strategy to balance profitability with its long-term energy transition goals.