British oil giant Shell has announced that it is abandoning the construction of one of Europe's largest biofuel plants in the Netherlands as it focuses on its fossil fuel business.

Faced with weak market conditions, the company halted construction of the renewable biofuel plant in Rotterdam last year, which was to produce sustainable aviation fuel (SAF) and diesel from waste.

"After assessing market dynamics and completion costs, it became clear that the project would not be competitive enough," said Mahteld de Haan, Shell's president for refining, renewable energy sources, and energy solutions, according to AFP.

The project was first announced in 2021 as part of plans to help Europe meet internationally binding emission reduction targets.

Shell and rival British energy giant BP are backing away from various climate goals and focusing more on oil and gas to boost profits, drawing criticism from environmental activists.

More than half of the facility's capacity was dedicated to producing SAF, a biofuel made from plant and animal materials such as oil and fat, which produces lower carbon emissions than traditional jet fuel.

As part of its plans to combat climate change, the EU requires airlines to gradually increase the amount of SAF they use to power their aircraft.

However, airlines complain that SAF is not widely available and is too expensive.

Shell warned investors last year that the second quarter had suffered a significant loss due to the delayed implementation of the project. | BGNES