European Chemical Industry News & Insights

VARO Invests $600m in Rotterdam SAF Facility to Meet 7% of EU's 2030 Target

At a glance
  • VARO is investing $600 million in a SAF manufacturing facility in Rotterdam.
  • The facility will produce 245 kt p.a. of SAF starting in Q4 2026.
  • This project aims to meet 7% of the EU's 2030 SAF target.
  • The investment will create up to 70 high-skilled green jobs.

Investment and Facility Details

VARO is investing $600 million to construct a large-scale Sustainable Aviation Fuel (SAF) manufacturing facility at the Gunvor Energy Rotterdam site. The facility, 100% owned by VARO, will have a SAF production capacity of 245 kt p.a. and a total feedstock capacity of 350 kt p.a., including bio-naphtha and bio-propane. Production is expected to commence by Q4 2026.

Contribution to EU Targets

This facility aims to contribute up to 7% of the EU's 2030 SAF target, supporting the EU’s decarbonization agenda in the aviation sector. SAF produced at the facility will have 90% less greenhouse gas emissions compared to conventional jet fuel.

Strategic Importance

The investment aligns with VARO’s ONE VARO Transformation strategy, which includes advanced biofuels as one of its five strategic growth pillars. The facility will help VARO achieve its goal of producing over 250 kt p.a. of net biofuels capacity by 2026, with a long-term ambition of reaching over 500 kt p.a.

Location and Market Demand

Located in Rotterdam, a major aviation hub, the facility will benefit from proximity to key markets and existing infrastructure, including port facilities, wastewater treatment, and transportation networks. This strategic location positions VARO to meet the growing European demand for jet fuel, which is expected to increase by more than 20% over the next five years.

Job Creation

The project is expected to create up to 70 high-skilled green jobs, contributing to the local economy and supporting the broader energy transition.