According to Bloomberg, BP has decided to suspend its Sustainable Aviation Fuel (SAF) production expansion project at its Castellón refinery in Spain. The project was originally part of BP’s $2.2 billion decarbonization plan announced in 2023 to promote low-carbon fuels.
Sources familiar with the matter said that BP made the adjustment mainly because the SAF market has not developed as expected, and demand growth has been slow, which has put the economics of the expansion plan into question.
In fact, in February this year, BP has announced that it will significantly reduce the proportion of investment in renewable energy, the future will be more resources reconfigured to oil and gas and other traditional energy business. This strategic shift means that its “transition to net zero” target pace will be further slowed.
BP’s move reflects that, even in the context of the global green transition calls for more and more, SAF and other emerging energy markets are still facing policy, cost, technology and demand for multiple challenges of uncertainty.
