Gunvor joins Varo to develop SAF facility in Rotterdam
Energy commodities trading company Gunvor Group announced it will join Varo Energy as an equal partner to jointly develop a SAF facility in Rotterdam.
Varo Energy had earlier announced plans to develop facility in 2023 and has since made significant progress.
“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,” said Torbjörn Törnqvist, CEO, Gunvor.
Under the new partnership, costs and risks to develop the plant up to the final investment decision (FID) will be shared by two firms on an equal basis.
Upon joint FID, and subject to necessary regulatory approvals, VARO and Gunvor will form a project company owned equally by both parties.
Gunvor said that the basis of design for the facility has been finalised and the front-end engineering design (FEED) phase is expected to be completed in Q4 2024.
Varo added that the facility will be able to process a variety of feedstocks and capable of producing either SAF or HVO.
“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,” said Dev Sanyal, CEO of Varo Energy.
“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 FID.”
Gunvor said that the Rotterdam site will benefit from existing infrastructure including transportation and relevant pipeline network, existing utilities and port facilities and geographic proximity to key customers and markets in Northern Europe and beyond.