VARO announces plan to invest $600m to build major Sustainable Aviation Fuel manufacturing facility in Rotterdam

VARO announces plan to invest $600m to build major Sustainable Aviation Fuel manufacturing facility in Rotterdam

VARO Energy, a prominent player in the energy sector, has teamed up with Gunvor Group, a global physical energy commodities trader, to establish a groundbreaking Sustainable Aviation Fuel manufacturing facility. The facility will be constructed at the Gunvor Energy Rotterdam site, which offers an advantageous location at the core of Europe’s energy hub.

With a total production capacity of 350 kpta, the facility will focus on producing SAF, accounting for approximately 70 percent of its output. The remaining portion will consist of a combination of bio-naphtha and bio-propane. Equipped with state-of-the-art pretreatment capabilities and the ability to produce 100 percent SAF or 100 percent HVO, the VARO facility will stand at the forefront of the SAF industry, offering flexibility to adapt to market demands.

Gunvor’s GER site not only provides an ideal setting for the project but also demonstrates their commitment to transforming their traditional industrial site in Rotterdam to contribute to the Energy Transition. This partnership will not only lead to sustainable job creation but also solidify Rotterdam’s position as a hub for sustainable energy.

The production at the facility is set to commence in the fourth quarter of 2026, aligning with the anticipated surge in European SAF demand. Airlines, eager to reduce their carbon emissions, are expected to eagerly embrace the cleaner fuel offered by this collaboration.

Gunvor’s participation in the project goes beyond the partnership itself, as they will also be involved through an operations and maintenance agreement, along with other investments. This further reinforces their dedication to the energy transition and sustainable practices.

The Gunvor-VARO partnership is a remarkable example of how industry leaders can come together to address global challenges and drive positive change. By combining their expertise, resources, and commitment to sustainability, Gunvor and VARO are poised to make a significant impact on the aviation sector, offering a greener alternative that will contribute to a more sustainable future.

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12th September 2023