Varo’s Rotterdam SAF project gains momentum

Gunvor Group will join VARO Energy in building a large-scale SAF manufacturing facility at the Gunvor Energy Rotterdam site through a proposed joint venture.
Since VARO announced on September 7, 2023 its intention to build a large scale SAF facility as a sole owner with total feedstock capacity of 350 kt pa, the project has made good progress.
Under the terms of the agreement, costs, and risks to develop the plant up to the final investment decision (FID) will be shared 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.
Following a rigorous project development process, the basis of design has been finalised and the Front-End Engineering Design (FEED) phase is expected to be completed in Q4 2024.
The facility is being designed to be able to process a variety of feedstocks.
It will also have the capability to produce either SAF or HVO end products, allowing VARO and Gunvor to capture potential value by switching based on market conditions and regulatory requirements.
The location of the future facility, on the brownfield location of the Gunvor Energy Rotterdam site, will see it benefit from extensive existing infrastructure. This includes the transportation and relevant pipeline network, existing utilities and port facilities and geographic proximity to key customers and markets in Northern Europe and beyond.
Dev Sanyal, CEO of VARO Energy, said: “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.
Torbjörn Törnqvist, CEO of Gunvor, said: “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.”