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Global energy commodities trader Gunvor Group has formed a partnership with European energy company Varo Energy to produce sustainable aviation fuel (SAF) in Rotterdam, the Netherlands.

Located at the Gunvor Energy Rotterdam (GER) site, the facility would have a total capacity production of 350 kilo tonnes/year, comprising approximately 70% SAF (245 kilo tonnes/year), with the remainder a mixture of bio-naphtha and bio-propane, the companies said on 7 September.

The site will offer flexibility to switch between SAF and hydrotreated vegetable oil (HVO) production, according to the companies.

Production was expected to begin by the fourth quarter of 2026.

“With the potential to produce around 245 kilotonnes/year of SAF when it comes onstream, this new manufacturing facility alone will provide up to 7% of the EU’s 2030 SAF target,” VARO CEO Dev Sanyal said.

SAF produced would have on average 90% less Green House Gas (GHG) emissions compared to conventional jet fuel, the companies said.

According to its website, the Gunvor Group also owns the Gunvor Petroleum Rotterdam (GPR) refinery, in the Port of Rotterdam, the Gunvor Refinery Ingolstadt (GRI) refinery, in Germany, and two biofuel processing plants in Spain in Berantevilla and Huelva.

Swiss-based private company Varo Energy has two divisions – the first comprises manufacturing, storage, distribution and trading of conventional energies, while the second is focused on sustainable energy and includes biofuels, biogas, green hydrogen, e-mobility and nature-based carbon removals.

In February, VARO signed an agreement with German airline company Lufthansa to provide SAF from 2026.