Shell Discards Biofuels Project in Rotterdam Amid Market Headwinds

Shell plc SHEL, a British energy giant, announced that it does not intend to restart the construction and development of a biofuels plant at the Shell Energy and Chemicals Park in Rotterdam, Netherlands. The construction of this plant was approved in 2021, with operations initially expected to begin in 2025. However, the development of the biofuels facility was halted in July 2024 due to unfavorable market conditions.Following a comprehensive evaluation process, Shell decided not to proceed with the project any further. The analysis of market circumstances and the costs associated with finishing the project indicated that the construction would not be competitive. This implies that the project would not be able to meet the demand for low-carbon products at affordable rates. As such, the company decided to drop this project.Shell stated that the decision not to continue with its project aligns with its strategy of allocating capital toward ventures that serve customers as well as generate value for shareholders. Like several other oil and gas companies, Shell is stepping back on its renewables ambitions and shifting its focus to the traditional fossil fuels business. The reason for this shift is likely due to the capital requirements of renewable energy projects and the comparatively lower returns.SHEL’s Zacks Rank & Key PicksCurrently, SHEL carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Repsol S.A. REPYY, Antero Midstream Corporation AM and Galp Energia SGPS SA GLPEY. While Repsol sports a Zacks Rank #1 (Strong Buy), Antero Midstream and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield compared to its sub-industry peers makes it an attractive choice for investors who seek consistent returns.Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Antero Midstream Corporation (AM): Free Stock Analysis Report Repsol SA (REPYY): Free Stock Analysis Report Galp Energia SGPS SA (GLPEY): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks