Global energy commodities trader Gunvor Group is set to invest in 50% of European energy company VARO Energy’s sustainable aviation fuel (SAF) facility in the Netherlands.
The two companies said they would work together in a joint venture to build a large-scale facility at Gunvor Energy’s Rotterdam site, which would have a total capacity of 350 kilo tonnes/year, comprising approximately 70% SAF (245 kilo tonnes/year), with the remainder a mixture of bio-naphtha and bio-propane.
VARO first announced its plan to build the facility last September as a sole owner.
Under the terms of the agreement between the two companies, costs and risks to develop the plant up to the final investment decision (FID) would be shared on an equal basis, the companies said on 1 August.
Upon joint FID, and subject to necessary regulatory approvals, the two companies said they would form a project company owned equally by both parties.
The companies said they expected the Front-End Engineering Design (FEED) phase to be completed in the fourth quarter of this year.
“Large scale production and adoption of SAF are critical to meeting the airline industry’s goal of achieving net-zero emissions by 2050. We look forward to working with VARO to develop SAF production at our site in Rotterdam, which is a strategically central location with proximity to extensive port facilities, major European airports and well-developed energy infrastructure,” Gunvor CEO Torbjörn Törnqvist 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.
Gunvor has committed to cut Scope 1 and 2 emissions by 40% by 2025.
Active in 26 countries, 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.
VARO has announced plans to invest around US$3.5bn over the 2022-26 period, with two-thirds committed to sustainable energies. The company has a net zero target for scope 1, 2 and 3 by 2040.
