Gunvor Group will collaborate with VARO Energy (“VARO”) to develop a large-scale SAF manufacturing facility at the Gunvor Energy Rotterdam site through a proposed joint venture.
As per press release, since VARO announced on September 7, 2023, its intention to establish a large-scale SAF facility with a total feedstock capacity of 350 kt per year, the project has progressed well.
According to the agreement, the costs and risks associated with developing the plant up to the final investment decision (FID) will be shared equally. Once the joint FID is reached, and subject to necessary regulatory approvals, VARO and Gunvor will create a project company with equal ownership for both parties.
After a thorough project development process, the design basis has been finalized, and the Front-End Engineering Design (FEED) phase is expected to be completed by Q4 2024.
The facility will be designed to handle various feedstocks and produce either SAF or HVO end products, allowing VARO and Gunvor to optimize value based on market conditions and regulatory requirements.
Located at the Gunvor Energy Rotterdam site, the facility will benefit from existing infrastructure, including transportation and pipeline networks, utilities, port facilities, and proximity to key customers and markets in Northern Europe and beyond.
Aviation plays a crucial and expanding role in the global economy by connecting people and businesses worldwide. However, it is also one of the fastest-growing sources of greenhouse gas emissions. This investment will help support the aviation sector’s decarbonization efforts, with the facility capable of producing SAF equivalent to 7% of the European Union’s SAF mandate for 2030.
To read more about Sustainable Aviation Fuel Industry News, continue reading BioEnergyTimes.com
