Varo Energy reveals strategy to adapt to the energy transition
Varo Energy, based in Zug, Switzerland, plans to invest USD3.5 billion in the next five years, with around two-thirds of that investment focused on sustainable energies. This investment will enable Varo to provide integrated energy solutions to a wide variety of sectors including food, wholesalers and retailers as well as hard-to-abate sectors like industrial heat and aviation. Varo also announced its commitment to become net zero by 2040.
“Our customers’ needs are changing fast as they adapt to the energy transition while expecting reliability of supply. They want a partner that moves with them, one that can advise and provide a wide range of energy and decarbonisation solutions from a single company,” said Dev Sanyal, Varo CEO.
Varo Energy announced a new strategy consisting of “twin-engines”. Engine 1 focuses on conventional energies generating high levels of cash flow to reinvest into Engine 2, focused on sustainable energies. Engine 2 consists of five growth pillars targeting the most attractive low-carbon growth markets in Europe: Biofuels; Biomethane & BioLNG; Hydrogen; E-mobility; and, Carbon Removals.
“The need to take action to limit global warming is driving regulatory change and shifting consumer behaviour and it is clear that Varo has a key role to play in Europe’s energy transition and energy security. Dev has an unrivalled track record in building low-carbon businesses and I know he and the leadership team are well placed to deliver on Varo’s ambitious new strategy,” said Marcel van Poecke, Varo chairman and vice chair of Carlyle International Energy Partners.
“When we established Varo 10 years ago, we wanted to create an agile business that could move quickly to capitalise on opportunities in the energy sector. The energy transition also offers huge opportunities. Our new strategy and Varo’s track record of growth and acquisitions means we are well placed to make the most of these opportunities and continue to scale the business,” said Russell Hardy, Vitol CEO.
