Gunvor divests stake in rotterdam terminal to ges under long-term energy transition partnership

VARO’s project has made significant progress since announcement in September 2023. FEED has advanced and is expected to be complete, Q4 2024.
Gunvor will join VARO as an equal partner to jointly develop a large-scale Sustainable Aviation Fuel (SAF) manufacturing facility.
The manufacturing facility in Rotterdam aims to deliver up to 7% of EU 2030 SAF mandate with nameplate capacity of 350 kt p.a.
Focus on maximising flexibility in both feedstock and products (HVO and SAF) utilising proven technology to allow the plant to benefit from shifts in supply and demand.

ZUG / GENEVA – Gunvor Group (“Gunvor”) will join VARO Energy (“VARO”) in building a large-scale SAF manufacturing facility at the Gunvor Energy Rotterdam site through a proposed joint venture.

Since VARO announced on September 7, 2023 its intention to build a large scale SAF facility as a sole owner with total feedstock capacity of 350 kt pa., the project has made good progress.

Under the terms of the agreement, costs, and risks to develop the plant up to the final investment decision (FID) will be shared on an equal basis. Upon joint FID, and subject to necessary regulatory approvals, VARO and Gunvor will form a project company owned equally by both parties.

Following a rigorous project development process, the basis of design has been finalised and the Front-End Engineering Design (FEED) phase is expected to be completed in Q4 2024.

The facility is being designed to be able to process a variety of feedstocks. It will also have the capability to produce either SAF or HVO end products, allowing VARO and Gunvor to capture potential value by switching based on market conditions and regulatory requirements.

The location of the future facility, on the brownfield location of the Gunvor Energy Rotterdam site, will see it benefit from extensive existing infrastructure. This includes the transportation and relevant pipeline network, existing utilities and port facilities and geographic proximity to key customers and markets in Northern Europe and beyond.

Aviation is a vital and growing part of the global economy, connecting people and businesses around the world. However, it is also one of the fastest-growing sources of greenhouse gas emissions. Through this investment, VARO and Gunvor will support the aviation sector's decarbonisation with the capacity to produce SAF equivalent to 7% of the current SAF mandate set by the European Union for 2030.

Torbjörn Törnqvist, CEO of Gunvor, said:

“Large scale production and adoption of SAF are critical to meeting the airline industry’s goal of achieving net-zero emissions by 2050. We look forward to working with VARO to develop SAF production at our site in Rotterdam, which is a strategically central location with proximity to extensive port facilities, major European airports, and well-developed energy infrastructure.”

Dev Sanyal, CEO of VARO Energy, said:

“If efforts to decarbonise aviation are to be successful, it is essential that European SAF supply increases to meet mandated demand growth by the end of the decade. This can only be achieved by designing and constructing production facilities leveraging existing infrastructure coupled with the ability to process the widest range of feedstocks and the flexibility to produce both HVO and SAF. At VARO, we have developed this project with a focus on cost competitiveness in order to be a reliable counterparty for our customers’ growing demand.

Strong partnerships between companies will accelerate this pathway and I am delighted that Gunvor will be joining us as an equal partner. Our focus now is on completing FEED this year in order to move towards a Final Investment Decision.”

Notes to editors

About SAF
Sustainable Aviation Fuel is a ‘drop-in’ fuel. It is compatible with existing aircraft and fuel logistics infrastructure without requiring any modifications. At scale, SAF has an important role to play in helping the aviation industry decarbonise. Used as a direct replacement for conventional aviation fuel, SAF offers up to 90% Greenhouse Gas (“GHG”) savings, allowing the commercial aviation sector to decarbonise the vast majority of its emissions.

About VARO Energy
VARO Energy (“VARO”) is the partner of choice for customers in the energy transition by providing the sustainable and reliable energy solutions that they need to decarbonise. Engine 1 includes manufacturing, storage, distribution, marketing, and trading of conventional energies. Engine 2 activities are focused on sustainable energies and include biofuels, biogas, green hydrogen, e-mobility, and nature-based carbon removals. VARO plans to invest around $3.5 billion over the 2022-26 period, with two-third committed to sustainable energies. The company has a net zero target for scope 1, 2 and 3 by 2040. VARO, a private company owned by Carlyle Group (66.66%) and Vitol (33.33%) is headquartered in Switzerland with a diversified presence in twenty-six countries.

About Gunvor
Gunvor Group is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy, bulk materials, and base metals from where they are sourced and stored to where they are demanded most. Gunvor, which generated turnover of US $127 billion on volumes of 177 million MT in 2023, has committed to cut Scope 1 and 2 emissions by 40% by 2025. For more information, visit GunvorGroup.com

HOUSTON – As part of its strategy to accelerate the energy transition, Gunvor USA LLC (Gunvor), part of the Gunvor Group and one of the world's largest independent commodities trading houses, has executed a feedstock supply and product offtake Letter of Intent with Dallas-based ClearShift LLC (ClearShift), a leader in the development of gas-to-liquids technology and the production of low-carbon fuels and specialty chemicals.

The Letter of Intent covers a 10-year supply of all natural gas and renewable natural gas, the offtake of low carbon diesel, and the offtake of high-grade carbon-neutral chemicals from ClearShift’s facility to be located near the chemical corridor in Louisiana.

The structure of Gunvor’s supply and offtake allows for a fully de-risked margin to ClearShift, while providing optionality for both parties to capture additional margin. The facility will consume approximately 55,000 MMBtu of natural gas and renewable natural gas per day and will produce approximately 75 million gallons per year of low-carbon renewable diesel and zero carbon, high-grade specialty chemicals. ClearShift also produces clean hydrogen, which is consumed in its non-combustion production process.

“ClearShift is pioneering the energy transition, creating pure, low carbon fuels and carbon neutral specialty chemicals from readily available cheap hydrocarbon supplies,” said Shane Foster, Energy Transition Lead – Americas at Gunvor. “We look forward to building a long-term relationship focused on enhancing the variety and quality of fuels and chemicals we offer to our customers.”

“We are thrilled about our relationship with Gunvor,” said John Stephenson, CEO of ClearShift. “When combined with the new incentives available in the Inflation Reduction Act, this agreement serves as a quantum leap for our business, illustrating how sustainable technology-based companies and leading commodity trading houses can partner together to ensure that the next wave of sustainable infrastructure thrives.”

About ClearShift
ClearShift produces ultra-pure, environmentally friendly fuels and specialty chemicals using a cutting-edge gas-to-liquids (GTL) process, responsibly replacing legacy oil-based fuels and chemicals. Its GTL technology converts methane, flare gas and CO2 into low carbon fuels and non-combustible carbon neutral specialty chemicals, removing the associated CO2 from the air permanently. ClearShift helps companies convert pollution into profit, while reducing their carbon footprint. For further information, visit www.goclearshift.com.

About Gunvor Group
Gunvor is one of the world's largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure — refineries, pipelines, storage and terminals — that complement our core trading activity and generate sustainable value across the global supply chain for our customers. Gunvor established Nyera, its wholly owned subsidiary dedicated to identifying Energy Transition investments, including new sustainable commodities and businesses.

The facility will have a total production capacity of 350 kpta; approximately 70% will be SAF, with the remainder a mixture of bio-naphtha and bio-propane. With full flexibility between 100% SAF and 100% HVO and cutting-edge pretreatment capabilities, the VARO facility will be positioned at the forefront of the SAF industry.

Gunvor’s site provides VARO with a strategic location for the project at the heart of Europe’s energy hub, and GER’s existing industrial infrastructure will allow for its rapid development. Production is expected to commence by Q4 2026, enabling the facility to contribute to the significant growth in European SAF demand that is expected in the coming years. Gunvor will further participate through an operations and maintenance agreement and other investments.

This partnership furthers Gunvor’s goal of repositioning its traditional industrial site in Rotterdam to contribute to the Energy Transition, while creating sustainable jobs for the local economy. SAF that will be produced has on average 90% less Green House Gas (GHG) emissions compared to conventional jet fuel and will provide this to key airline customers.

About Gunvor Group
Gunvor Group is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced and stored to where they are demanded most. Gunvor has strategic investments in industrial infrastructure—refineries, pipelines, storage and terminals—that complement our core trading activity and generate sustainable value across the global supply chain for our customers. Gunvor, which generated turnover of US $150 billion on volumes of 165 million MT in 2022, has committed to cut Scope 1 and 2 emissions by 40% by 2025. For more information, visit GunvorGroup.com.

About VARO
VARO Energy (“VARO”) is the partner of choice for customers in the energy transition by providing the sustainable and reliable energy solutions that they need to decarbonise. Engine 1 includes manufacturing, storage, distribution, marketing, and trading of conventional energies. Engine 2 activities are focused on sustainable energies and include biofuels, biogas, green hydrogen, e-mobility, and nature-based carbon removals. VARO plans to invest around $3.5 billion over the 2022-26 period, with two-third committed to sustainable energies. The company has a net zero target for scope 1, 2 and 3 by 2040. VARO is a Swiss-based private company.

HOUSTON (2 March 2023) – As part of its strategy to accelerate the energy transition, Gunvor USA LLC (Gunvor), part of the Gunvor Group, has entered into a green hydrogen Letter of Intent with Fresno, California-based Yosemite Clean Energy LLC (Yosemite), a leader in the development of biomass to green hydrogen in the state of California. The Letter of Intent covers the purchase and marketing of all production of green hydrogen from Yosemite’s first three facilities located in Oroville, Tuolumne and Visalia, California. Each facility is projected to produce 7 million kilograms per year of negative carbon intensity green hydrogen from 90,000 bone dry tons of biomass that are sustainably sourced from forest fuel hazard reduction projects, which reduce the threat of catastrophic wildfires in California. Yosemite will also use biomass generated post-wildfires as part of current salvage and restoration operations. Yosemite biofuels plants will help farmers by using end-of-life orchard biomass to eliminate open burning and the associated CO2 and air quality impacts within the Sacramento and San Joaquin Valleys. The first facility, located in Oroville, is expected to begin operations in the second half of 2025, while the remaining two facilities are projected to start over the two following years. “Green hydrogen is a clear area of opportunity to be explored for its role in the new energy landscape, and as a global commodities trader, Gunvor is pleased to support an innovative business such as Yosemite Clean Energy. Gunvor aims to be a long-term player in the maturation of global hydrogen markets, driven by expansion in transportation, aviation and industrial markets. Yosemite will be a key part of that growth,” said Fredrik Törnqivst, Gunvor’s Energy Transition Director and Managing Director for Nyera, an investment vehicle dedicated to identifying sustainable commodities trading and business opportunities. Yosemite Clean Energy’s CEO Tom Hobby said: “For decades, the convergence of technologies, biomass producers, and end uses for biomass have been lacking, causing millions of tons of waste biomass to be underutilized across North America. Today we have the biomass conversion technologies, and in our case the downstream syngas processing, by which to economically create carbon negative H2 and advanced biofuels. Yosemite Clean is championing the best practices of sustainable management on our forest and farms. We are using biomass that has been burning, dying, and rotting, to produce zero-emission, carbon-negative green biofuels. We are very pleased to have Gunvor as our marketing and off-take partner for hydrogen fuels and the development of our ‘stump-to-pump’ marketing plan.” About Yosemite Yosemite is a bioenergy development company that specializes in transforming farm and forest wood waste into carbon-negative biofuels, including green hydrogen and renewable natural gas. Yosemite provides renewable solutions to California’s transportation and broader energy sectors while reducing risk of wildfires, raising air quality, and creating jobs and economic stimulus in underserved rural communities. Over the last decade, these areas have experienced a significant rise in catastrophic wildfire due to mismanagement of the forests, causing billions of dollars of property and environmental damage. Yosemite is developing a network of biofuels plants that are partially owned by the forest and agricultural communities they serve. The company is at various stages of development planning on biofuels plants across the state of California. For further information, visit yosemiteclean.com

Dutch tank storage company Vopak is acquiring the shares of Gunvor Petroleum Antwerp from commodity trader Gunvor Group Ltd (“Gunvor”), giving it access to the Gunvor concession in the Antwerp port area. Vopak is committed to sustainably redeveloping the site. For example, together with the Port of Antwerp-Bruges, the company will focus on joint development/implementation to support renewable energy. This is another important step towards a climate-neutral economy. The site is some 105 hectares in size and offers deep-sea, river, road and rail access, as well as pipeline connections to Northwest Europe. The adjacent and future pipelines are suitable for transporting i.a. propylene, ethylene, CO2 and hydrogen. New green energy hub Vopak will reconfigure the concession with the primary aim of making a positive contribution to the decarbonisation of the industrial cluster on the Antwerp port platform. Where necessary, soil remediation will take place in close consultation with internal and external experts and authorities. Furthermore, the Port of Antwerp-Bruges and Vopak will continue their discussions to structure their common strategic ambition, which is to jointly develop a new green energy hub. Shahb Richyal, Global Head of Portfolio, Gunvor: "Since rescuing GPA from insolvency in 2012, Gunvor has been committed to operating the refinery and terminal as a responsible tenant and employer in the Port of Antwerp. Over many years of operations, Gunvor invested considerably in the asset, and through the mothballing process and subsequent cessation of all activities sought to ensure that all stakeholders and employees were treated fairly, and that the environment remained respected. By reaching an agreement with Vopak for the acquisition of the shares of GPA, Gunvor is ensuring the site will have a new future under responsible leadership". Jacques Vandermeiren, CEO Port of Antwerp-Bruges: “As Port of Antwerp-Bruges, we’re very pleased that Vopak has found expansion opportunities on the Gunvor site. This Dutch global player has been an established value on the Antwerp port platform for many years and will continue to focus on green ammonia, sustainable fuels and finer chemical products at the new site.Not only does this allow Vopak to continue to grow within our port in line with the strategy of the Port of Antwerp-Bruges, but we’re also demonstrating how, as a port, we’re shaping the energy transition together with businesses.” Annick De Ridder, Vice-Mayor of the City of Antwerp and President of the board of directors of Port of Antwerp-Bruges: "The collaboration with Vopak fits perfectly with Port of Antwerp-Bruges' ambition to become the energy gateway to Europe as a 'green port'. That this global player that has been anchored in our port for years can now sustainably expand within Europe's largest petrochemical cluster is excellent news. In this way, the Dutch company Vopak makes Flanders' economic engine continue to turn swiftly." Patrick van der Voort, President Europe & Africa, Royal Vopak: “We’re very pleased to have access to this prime location in Europe’s leading petrochemical cluster. It offers us a unique opportunity to implement our strategy, forge new partnerships and support the industry in its decarbonisation by developing critical infrastructure. The site’s extensive size, strategic location and connectivity to Northwest Europe offer unparalleled opportunities.”

About Royal Vopak Royal Vopak is the world’s leading independent tank storage company. We store vital products with care. Products for everyday life. The energy that allows people to cook, heat or cool their homes and for transportation. The chemicals that enable companies to manufacture millions of useful products. The edible oils to prepare food. We take pride in improving access to cleaner energy and feedstocks for a growing world population, ensuring safe, clean and efficient storage and handling of bulk liquid products and gases at strategic locations around the world. We are excited to help shape a sustainable future by developing infrastructure solutions for new vital products, focusing on zero- and low-carbon hydrogen, ammonia, CO2, long duration energy storage and sustainable feedstocks. We have a track record of over 400 years in navigating change and are continuously investing in innovation. On sustainability, we are ambitious and performance driven, with a balanced roadmap that reflects key topics that matter most to our stakeholders and where we can have a positive impact for people, planet and profit and the United Nations Sustainable Development Goals. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. For more information, please visit www.vopak.com.

Air Products (NYSE:APD) and Gunvor Petroleum Rotterdam (GPR), a wholly-owned subsidiary of Gunvor Group (Gunvor), have signed a joint development agreement for an import terminal in Rotterdam. The agreement responds to the accelerating demand for green energy sources to meet climate objectives and the need to diversify energy sources. The import terminal is expected to provide green hydrogen to the Netherlands in 2026. Green Hydrogen Economy Green hydrogen is key to the energy transition. It has significant potential to decarbonize hard-to-abate sectors, such as heavy-duty transport and industry. A substantial amount of renewable energy is needed to produce green hydrogen. It is unlikely that Europe will be able to produce these amounts locally, making large-scale, green hydrogen imports essential for reaching targets set under the European Union's (EU) "Fit for 55" legislative package and REPowerEU. With this project, the Netherlands would make a leading contribution to EU energy transition goals. Key Development Milestones The signing of the agreement is an important step towards an investment decision that will be taken as the companies gain confidence in the regulatory framework, permitting process, and funding support. Certification of the green hydrogen is needed to ensure that the imported green ammonia and resulting green hydrogen is recognized and counted towards the EU renewable energy targets. For funding support, this project seeks to be recognized as an 'Important Project of Common European Interest' (IPCEI). Air Products looks forward to continuing engagement with the relevant stakeholders to establish the broader support available to the project. Gateway to Northwest Europe The Gunvor site in Europoort Rotterdam is one of several European locations envisaged by Air Products for the development of a green hydrogen import terminal. It offers strategic access for receiving green ammonia from large-scale green hydrogen production locations operated by Air Products and its partners from projects around the world. The green ammonia will be converted to hydrogen and distributed to markets within Europe, including the Netherlands, Germany, and Belgium. Air Products and Gunvor both have a proven track record for reliability and safety and are committed to delivering world-class performance in personal and process safety. Benefits to the Dutch Economy Independent analysis from CE Delft has shown the project will ultimately deliver EUR 260-425 million of indirect economic benefits, culminating in thousands of new jobs over the coming years. The savings in carbon dioxide (CO₂) emissions to the transport sector, combined with the benefit of reduction in other harmful emissions, would create an overall environmental benefit valued at over EUR 100 million by 2030. Ivo Bols, President Europe and Africa, said, "Air Products is pleased to take a next step towards a green hydrogen import terminal in Rotterdam, together with our partner Gunvor. Hydrogen import is essential to diversify our energy resources and meet climate objectives. Air Products, the largest hydrogen producer in the world, is committed to contribute to both ambitions by accelerating the development of the European green hydrogen economy via first-mover projects like these. We are looking forward to further cooperation with Gunvor to make Rotterdam ready for green hydrogen imports." "Gunvor is pleased to be partnering with Air Products through Nyera, our investment vehicle dedicated to supporting the Energy Transition, in order to leverage strategic locations such as our Rotterdam facility in a way that advances the development of sustainable and renewable energy initiatives," said Shahb Richyal, Global Head of Portfolio at Gunvor. Allard Castelein, CEO Port of Rotterdam: "We are very supportive of Air Products' and Gunvor's plans, which are a great example of using a brownfield location to set up a new import terminal for green ammonia in the port of Rotterdam. Both companies have been active in the energy sector for a long time and are responding to society's demand to reduce greenhouse gas emissions as well as to increase Europe's energy independence. Green ammonia is not only a hydrogen carrier and a feedstock for the chemical industry, but it's also an important renewable fuel for the shipping sector. First-mover projects like this will make Rotterdam Europe's foremost Hydrogen Hub." About Gunvor Group Gunvor Group is one of the world's largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced and stored to where they are demanded most. Gunvor has strategic investments in industrial infrastructure—refineries, pipelines, storage, and terminals—that complement core trading activities and generate sustainable value across the global supply chain for customers. In 2021, Gunvor reported turnover of US $135 billion on volumes of 240 million MT. Approximately 50% of the company's trading consists of "transitional" commodities, including biofuels, natural gas and LNG. For more information, visit GunvorGroup.com. About Air Products Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale low- and zero-carbon hydrogen projects supporting global transportation and the energy transition. The Company had fiscal 2021 sales of $10.3 billion from operations in over 50 countries and has a current market capitalization of about $55 billion. More than 20,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world.

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