Varo to build a SAF manufacturing facility at Gunvor

Varo Energy plans to build a new sustainable aviation fuel (SAF) manufacturing facility at Gunvor’s Rotterdam refinery with a USD 600MM investment which will meet up to 7% of the EU’s 2030 SAF target, as per Hydrocarbonprocesing.

The new facility will be wholly owned by Varo and have capacity to produce 245,000 metric tons a year of SAF, with first production set for Q4 2026.

In February, Varo signed an initial agreement with Lufthansa to supply it with SAF from 2026 onwards. Along with SAF, the facility will also produce bio-naphtha and bio-propane, with total feedstock capacity reaching 350,000 tons a year.

SAF is produced using waste and renewable biomass sources.

The energy trader operates a 75,000 barrel-per-day oil refinery at Rotterdam.

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