BP has decided to pause the expansion of its biofuels project aimed at producing sustainable aviation fuel (SAF) at the Castellon oil refinery in Spain, Bloomberg reported on Tuesday. The decision comes as the company faces weaker-than-expected growth in the SAF market, reports MSN.
The Castellon project was part of a larger €2 billion decarbonization initiative announced in 2023 for the site located on Spain’s eastern coast. Despite the pause, BP said it will continue evaluating a similar biofuels expansion at its Rotterdam facility in the Netherlands, with a final investment decision expected by 2027.
While BP declined to comment directly on the status of the Castellon project, a spokesperson reiterated the company’s broader guidance: it may move forward with one new biofuels plant before 2027, depending on market conditions and project economics.
The sustainable aviation fuel sector has encountered several setbacks recently, leading BP to scale back its earlier ambitions. The company, which once aimed to establish five new biofuels facilities globally, has already cancelled plans for sites in Germany and the United States and has also paused a project in Australia.
The move comes as BP undergoes a strategic shift, trimming its investments in low-carbon energy amid market uncertainty and a reassessment of its long-term goals.
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