- Gunvor ends terminal operations in Rotterdam, following the refinery closure in December 2024.
- The refinery closure led to 150 job losses from 260 employees.
- Gunvor and VARO Energy are developing a SAF plant with a 350 kiloton annual capacity.
- The SAF project aims to complete the FEED phase by the end of 2024.
Operational Reductions in Rotterdam
Gunvor, a Swiss-based multinational, is reducing its presence in Rotterdam by ceasing terminal activities in Europoort. This follows the permanent closure of its motor fuel refinery in December 2024, driven by an uncertain investment climate in the Netherlands. The initial refinery closure was due to a lack of commercially viable raw materials, influenced by low processing margins in Europe, new refining capacity in Africa and the Middle East, the rise of electric vehicles, and increased operational costs.
Impact on Employment
The refinery's closure affected approximately 260 employees and 140 external contractors, resulting in 150 job losses. Initially perceived as a temporary halt, the closure became permanent, surprising employees. The end of terminal operations is expected to lead to further job losses, though exact numbers are not confirmed.
Focus on Energy Transition
Despite scaling back traditional operations, Gunvor remains committed to energy transition projects. A notable initiative is the collaboration with VARO Energy to develop a Sustainable Aviation Fuel (SAF) production facility at the Gunvor Energy Rotterdam site. The SAF plant aims for a capacity of 350 kilotons per year, with the Front-End Engineering Design (FEED) phase expected to complete by the end of 2024.
Strategic Shift
Gunvor's actions highlight the challenging environment for traditional refining and storage operations in Europe, while emphasizing a strategic shift towards future-oriented energy solutions. The uncertain investment climate in the Netherlands is a significant factor in these decisions.
