The Financial Times reports that Danish company Ørsted has halted work on a green fuels plant in the Swedish town of Örnsköldsvik.

Work on the plant, known as FlagshipONE, began a year ago and was intended to produce about 55,000 tons per year of e-methanol for industries including shipping and aviation. E-methanol is made by combining hydrogen and carbon dioxide.

According to the publication, the plant closure is “the latest sign that companies are pulling back from flagship projects designed to accelerate the world’s shift away from fossil fuels.” Shell and Fortescue have also pulled back from renewable energy projects it says.

Citing slower than expected growth in this market, the publication also quotes Ørsted chief executive Mads Nipper saying, “The business case has deteriorated during maturation due to the inability to sign long-term offtake contracts at sustainable pricing and significantly higher project costs.”

In a related story, Reuters reports a delay in construction of a major U.S. offshore wind project which lowered Ørsted’s share price by as much as 9%.