Global energy trader Gunvor Group announced on Thursday its collaboration with VARO Energy to construct a large-scale sustainable aviation fuel manufacturing facility at the Gunvor Energy Rotterdam site. The two companies will equally share the costs and risks associated with the project until the final investment decision.
According to Gunvor, once the joint final investment decision is made and regulatory approvals are obtained, a project company will be established, jointly owned by both firms. VARO initially announced the project in September last year, and significant progress has been made since then, with the Front-End Engineering Design phase expected to be completed by the end of this year.
The planned facility in Rotterdam aims to produce 350 kt of sustainable aviation fuel per annum, which could meet up to 7% of the European Union's requirement by 2030. The facility is designed to process various feedstocks, producing either sustainable aviation fuel or hydrotreated vegetable oil, providing flexibility based on market conditions and regulatory requirements.
The facility will be located at Gunvor Energy Rotterdam's brownfield site, leveraging existing infrastructure such as transport, pipelines, utilities, and port facilities. Its proximity to key Northern European markets is expected to be an advantage.
Gunvor currently operates a 75,000 barrel-per-day oil refinery at the Rotterdam site.
