VARO and Gunvor partner for sustainable aviation fuel plant in Rotterdam
VARO Energy and Gunvor Group have announced a strategic joint venture to develop a large-scale sustainable aviation fuel (SAF) manufacturing facility at the Gunvor Energy Rotterdam site. This collaboration aims to significantly contribute to the European Union’s 2030 SAF mandate by producing up to 350 kilotonnes of SAF per annum, equating to about 7% of the EU’s required supply.
The joint venture will leverage the existing infrastructure at the Gunvor site, benefiting from its strategic location near major European airports and robust energy networks. The facility is designed for flexibility, able to process a variety of feedstocks and switch between producing SAF and hydrotreated vegetable oil (HVO) based on market demands and regulatory requirements.
The partnership is structured to share costs and risks equally up to the final investment decision, with a project company to be formed subject to regulatory approval. This venture aligns with both companies’ commitments to sustainability and reducing carbon emissions, with VARO planning substantial investments in sustainable energy solutions as part of its broader strategy.
Dev Sanyal, CEO of VARO Energy, emphasised the importance of increasing SAF supply to meet decarbonisation goals in aviation.
“If efforts to decarbonise aviation are to be successful, it is essential that European SAF supply increases to meet mandated demand growth by the end of the decade. This can only be achieved by designing and constructing production facilities leveraging existing infrastructure coupled with the ability to process the widest range of feedstocks and the flexibility to produce both HVO and SAF. At VARO, we have developed this project with a focus on cost competitiveness in order to be a reliable counterparty for our customers’ growing demand.
Strong partnerships between companies will accelerate this pathway and I am delighted that Gunvor will be joining us as an equal partner. Our focus now is on completing FEED this year in order to move towards a Final Investment Decision.”
Torbjörn Törnqvist, CEO of Gunvor, highlighted the facility’s potential to support the aviation industry’s net-zero emissions targets by 2050. “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.”
The project is currently in the Front-End Engineering Design (FEED) phase, with completion expected by the fourth quarter of 2024. The new plant’s capabilities will enhance both companies’ ability to adapt to changing market conditions and regulatory landscapes.
