Varo Energy will build a large-scale production facility for sustainable aviation fuel (SAF) at the Gunvor Energy location in Rotterdam. The construction of the factory, which partly uses the existing infrastructure at the Gunvor site, involves an investment of $600 million. This facility alone is expected to contribute up to 7% of the EU's 2030 SAF target.
The facility, which is 100% owned by Varo, can process a wide variety of bio-based raw materials into fuel. The facility will have a total feedstock capacity of 350 kt per year, with a SAF production capacity of 245 kt per year. in addition to a mixture of bio-naphtha and bio-propane.
Aviation is an essential part of the global economy, connecting people and businesses around the world. But the industry is also one of the fastest growing sources of greenhouse gas emissions. Through this investment, VARO is supporting the decarbonization of the aviation sector by manufacturing the SAF that airlines need to achieve their objectives. This forms the core of the 'Customer Lighthouses' established by VARO to support customers in the 'hardest to reduce' sectors, such as aviation, in their energy transition. The first of these was announced in February together with Lufthansa and VARO.
SAF, made from waste and renewable biomass sources, is a viable and scalable low-carbon solution for the aviation sector. This investment from VARO will give more aviation customers access to SAF, which can be used in current generation aircraft and utilizes current refueling infrastructure.
Production is expected to start in the fourth quarter of 2026, allowing Varo to contribute to the significant growth in European demand for SAF expected in the coming years. In a scenario where European demand for SAF rises to 3,5 million tonnes per year, this production facility alone could supply up to 7% of the EU's 2030 target of 5% SAF.
Source: VaroEnergy
