VARO Energy investing $600m to build SAF refinery in Rotterdam
VARO Energy is building a large-scale Sustainable Aviation Fuel (SAF) production facility at the Guvnor Energy site in Rotterdam. The firm will invest $600m in the facility including a pre-treatment unit, optimising feedstock flexibility and production capacity.
VARO expects production to begin in the fourth quarter of 2024. The feedstock capacity will be 350,000t/year and a SAF production capacity of 245,000t/year, alongside a mix of bio-naptha and bio-propane. The facility hopes to contribute up to 7% of the EU’s 2030 SAF target.
Dev Sanyal, CEO, VARO said, “The development of a large-scale SAF manufacturing facility in Rotterdam, at the centre of one of Europe’s most significant aviation hubs, is an important milestone in the development of the ONE VARO Transformation strategy. This $600 million investment strengthens our leading position in biofuels in Europe by adding SAF production to our portfolio of solutions and will provide our airline customers with an important route to decarbonisation.”
As well as being near the major markets, Rotterdam has access to port infrastructure, wastewater treatment and the existing road, rail and pipelines needed for supply and distribution.
VARO agreed its first airline partnership in February when it signed a Memorandum of Understanding (MoU) with Lufthansa Group to offtake [use] the SAF it produces.