Gunvor and VARO to Develop SAF Facility in Rotterdam
- Costs and risks will be shared equally until the final investment decision (FID).
- The Front-End Engineering Design (FEED) phase is expected to be completed in Q4 2024.
- The facility will process various feedstocks and produce SAF or HVO.
- The project aims to support aviation's decarbonization with SAF production.
Project Overview
Gunvor Group will join VARO Energy in developing a large-scale Sustainable Aviation Fuel (SAF) manufacturing facility at the Gunvor Energy Rotterdam site through a proposed joint venture. The project, initially announced by VARO on September 7, 2023, aims to build a facility with a total feedstock capacity of 350 kt per annum.
Investment and Development
Under the agreement, costs and risks to develop the plant up to the final investment decision (FID) will be shared equally. Upon joint FID and necessary regulatory approvals, VARO and Gunvor will form a project company owned equally by both parties. The Front-End Engineering Design (FEED) phase is expected to be completed in Q4 2024.
Facility Capabilities
The facility is designed to process a variety of feedstocks and produce either SAF or Hydrotreated Vegetable Oil (HVO) end products. This flexibility allows VARO and Gunvor to adapt to market conditions and regulatory requirements. The location at the Gunvor Energy Rotterdam site will benefit from existing infrastructure, including transportation networks, utilities, and port facilities.
Environmental Impact
Aviation is a significant and growing part of the global economy but also a major source of greenhouse gas emissions. This investment aims to support the aviation sector’s decarbonization by producing SAF equivalent to 7% of the current SAF mandate set by the European Union for 2030.