Gunvor joins VARO to jointly develop large-scale Sustainable Aviation Fuel (SAF) manufacturing facility

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.

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

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.

GES is acquiring part of the assets of Stargate Terminal from Gunvor Group and will develop over 20 hectares of vacant land.
GES has ambitious plans to develop a large industrial site at Rotterdam for storage solutions for low carbon products to facilitate the energy transition.
This is the first deal announced by the newly formed GES, a company with a focus on energy transition fuels and related services.

________________________________________ Global Energy Storage (GES) announces today its first major investment at Europoort in the Port of Rotterdam. It is buying an interest in part of the assets of the Stargate Terminal from Gunvor Group and will develop more than 20 hectares at the heart of the port. The deal has been formally approved by the Port of Rotterdam Authority. The site includes a significant waterfront with deep water access, brownfield development opportunities and potential greenfield development sites. Gunvor will be a long-term partner of GES at the Port of Rotterdam. “We’re pleased to be partnering with GES to further support the development of environmentally responsible projects in the port of Rotterdam,” said Shahb Richyal, Global Head of Portfolio at Gunvor Group. “This deal is in line with Gunvor’s strategy to support the advancement of Energy Transition initiatives at our key asset locations.” Gunvor also recently announced that its Rotterdam facility will supply to material science company Dow cracker-ready feedstock, which will be used to produce circular plastics. GES’ ambitious plans include the development of a new multi-purpose seagoing jetty, as well as developing infrastructure for:

Consolidation of biofuel storage
Storage for renewable fuels
Gas storage
Gas to chemicals production
Green and blue hydrogen
Hydrogen carriers such as ammonia

Peter Vucins said, “This project aims to become one of the largest low-carbon developments at a world-class industrial hub, with the potential to significantly reduce the carbon footprint of future business in the Port of Rotterdam. Alongside a new jetty that we aim to develop and low-carbon commodity infrastructure, we are also looking to become part of the logistics chain needed to import blue and green hydrogen. I hope this gives a glimpse of the size of our ambitions.” The Port of Rotterdam is Europe’s largest port, with deep-water access and world-class connectivity to inland waterways and pipeline infrastructure. Peter Vucins said, “The port is ideally placed for this development, which will bring low-carbon technology to one of the world’s great trading hubs that has taken a leading position in the energy transition with very significant and ambitious developments of its own.” GES has a focus on energy transition fuels and fuels-of-the-future. Its strategy is to concentrate on key global hubs, international cross-linked business, and long-term relationships with top-tier energy suppliers. Eric Arnold, Executive Chairman of GES, added, “This is the first of what we hope will be many deals. We are looking to develop an international network of storage and logistics infrastructure for low-carbon commodities. You can expect to see a rapid expansion across 2021-22.” GES was set up by the management team from Global Petro Storage (GPS), the leading operator and developer of energy and chemical assets. GES has a unique proposition:

A proven management team with experience that is second-to-none
Private Equity backing, meaning swift decisions and a longer-term view
Exclusive focus on energy transition fuels

GES, which launched in May 2021, is backed by Bluewater, the specialist international private equity firm focused on the middle-market energy sector.

New entity Nyera to target sustainable investments in renewables, carbon capture Gunvor Group, one of the world’s largest physical energy commodities traders, has announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company’s Scope 1 and 2 emissions by 2025. The commitments come as a part of Gunvor’s Sustainability Commitments 2021 document, which outlines how the company is navigating the Energy Transition. For Gunvor, the two most significant activities that generate greenhouse gas emissions are the company’s industrial activities, specifically its European oil refineries, and its shipping fleet, both owned and chartered. Gunvor has committed to taking significant steps to reduce and/or compensate scope 1 and 2 emissions by 35% and 95%, respectively, by 2025. Overall, Gunvor commits to both further improve the environmental impact of its current trading portfolio and invest in new sustainable commodities and businesses. The company determines that steps must be taken today to effectively manage, limit, and where possible eliminate emissions, given the role hydrocarbons play in the global energy mix today. At the same time, the commercial viability of sustainable sources of energy is being increasingly realized. As new commodities enter and grow, Gunvor will be a part of ensuring their safe and efficient movement to help balance markets. Gunvor’s 2021 Sustainability Commitments charter lays out the details of the plan. Gunvor Group has already begun to undertake the following:

Established dedicated vehicle, Nyera (Swedish: “New Era”), to formalize non-fossil fuel investments comprising a minimum of 10% of net equity that, with leverage, is expected to amount to a commitment of at least half-billion dollars (USD).
Areas of Nyera’s focus include carbon capture and storage, renewable fuels, renewable power, and alternative fuels, including ammonia and hydrogen.
Company’s major credit lines will continue to embed specific sustainability-linked goals with linked KPIs.
For existing and new trading, dedicated programs will be established to reduce emissions and environmental impact, while taking into account human rights considerations, in line with our commitment to the UNGPs on Business & Human Rights.
Emissions from refineries will continue to decrease compared to 2019, through efficiency projects and a switch to renewable and carbon neutral electricity.
100% of owned ships and 75% of time charter shipping fleet will be “eco-vessels” by 2022, with an overall 100% before 2027.
Gunvor is in the process of finalizing its assessment of Scope 3 emissions, including those linked to the traded commodities and voyage charters; the company commits to follow the IMO improvement in efficiency targets of 40% by 2030, as per Gunvor’s membership in the Sea Cargo Charter.

Additional detail can be found in the four-page Sustainability Commitments 2021 document. As a leading global physical commodities trading company, Gunvor Group is inherently equipped to be responsive to market changes, and the company’s success over the last 20 years is based on its ability to do so. While Gunvor has historically focused on the safe and efficient movement of crude oil and oil products, the company has been for more than a decade diversifying into new commodities and strategies in response to shifting markets and opportunities. About 50 percent of Gunvor’s trading today consists of “transitional” commodities, based on the EU Taxonomy, which includes biofuels, natural gas, and liquefied natural gas (LNG). The company has also ceased physical coal trading and acquired biofuels plants. Gunvor was the first physical energy trader to launch a sustainability-linked financing, directly tying its performance in 15 different ESG criteria (including emissions reduction) to the interest rate of a facility.

Banks demonstrate strong support for feedstocks that meet European Green Deal Gunvor Group (“Gunvor”, “the Company”) has successfully closed a new US $540 million borrowing base facility (the “Facility”) to support the Company’s biodiesel trading activity. The Facility drew strong support among Gunvor’s banking partners, which align with its strategy to promote cleaner products with greener feedstock components complying with EU climate targets to reduce greenhouse gas emissions. The syndication launched at US $400 million and was oversubscribed to US $595 million. The Facility is structured around Gunvor’s biofuel inventory positions located at both the origin and destinations countries, including the Company’s two biofuel processing plants in Spain. Imports are made in strict conformity with the EU regulation applicable on biofuel products. The Facility’s pricing is competitive and reinforces the Group’s funding resources with its growing biofuel activity. “Biofuels, along with other ‘transitional’ commodities, are increasingly important to Gunvor’s trading mix,” said Muriel Schwab, CFO Gunvor Group. “Our banking partners have expressed considerable support for trading cleaner products as Gunvor pursues its Energy Transition strategy.” Gunvor’s Biofuel trading desk has been active since 2009 and is involved in the entire supply chain of carbon reduction in the fuel sector, including risk management and logistics. On a global basis, Gunvor sources a variety of feedstocks for the biofuel industry, such as vegetable oil, waste residues, and by-products, and then processes them in the Company’s own facilities to produce low CO2-emitting biofuels. Gunvor operates several blending facilities in Asia, the United States, and throughout Europe, where the company prepares biofuels for end-consumers across the world. Gunvor also trades CO2 tickets to complement the CO2 reduction strategy of the company. Gunvor maintains two wholly-owned biodiesel plants in Spain. At the end of first-half 2020, approximately 50% of Gunvor’s total trading volumes consisted of “transitional” commodities, including biofuels, natural gas, and LNG, as defined by the EU taxonomy for sustainable activities. The Bookrunners for the deal were Credit Agricole and Rabobank, which served respectively as Documentary Agent and Facility / Security Agent. Participating banks also included: Bookrunner and Mandated Lead Arranger

CA Indosuez (Switzerland) SA
Coöperatieve Rabobank UA

Mandated Lead Arranger

Citibank N.A
Unicredit bank AG

Lead Arranger

Mizuho Bank Europe N.V
UBS Switzerland AG

Arranger

Société Générale
Sumitomo Mitsui Trust Bank, Limited (London Branch)

Gunvor: Repeat of Q2 Volatility Hard to See

Despite having its business model tested during the first half of 2020 commodities trader Gunvor’s robust risk management and strong market analysis helped it produce its best second quarter ever, according to CEO Torbjorn Tornqvist. Here, Tornqvist explains how Gunvor is well positioned to take advantage in a growing market for LNG, as well as discussing how its European refining operations have been adapted in response to Covid-19 and the firm’s view of the renewables sector, where it sees plenty of opportunity. EI: The second quarter of this year produced a “super-contango” the likes of which we have never seen before (EIF Jun.3'20). In this new era of global uncertainty caused by Covid-19, can you see this degree of turbulence returning to the oil markets? Törnqvist: The sell-off was created by a combination of several extraordinary factors. Starting with a misjudged Opec meeting in March, which resulted in free-for-all production at a time when we saw demand collapse like never in history. As a consequence, there was a massive oversupply to the tune of 20 million-30 million barrels for a short period of time. It is very hard to see this combination of circumstances hitting the market again in the foreseeable future. EI: It is often said that “volatility is a trader’s best friend.” Does this adage still hold true, or does market turbulence also bring risks with it? Törnqvist: Gunvor’s business model was really tested during the first half. Our risk management is robust and our market analysis is well developed. We managed to take advantage of the contango in the second quarter, as well as correctly read the volatility for oil. It is important to point out that for Gunvor, commodities not related to the oil collapse and contango also contributed to profits during this period. Obviously, it would be hard to have strong earnings without some volatility. EI: You have indicated that this will be a very good year for the company financially. On the back of the Q2 meltdown, are you expecting net profits to exceed last year’s? Törnqvist: We do not publish details during the year, but we can say the second quarter was the best quarter we have ever recorded due to the set of circumstances already described. Gunvor’s volumes of oil and liquid gas are steady at approximately 2.8 million barrels per day, which is more than sufficient for us to have a high return on equity. Market conditions since July have been more challenging than during the first half, and we have adjusted our trading accordingly. Earnings are back to “normal” expectations. EI: Gunvor is the largest trader of LNG, volumetrically, of all the trading firms. What is the secret to this exponential growth, and what will you have to do to sustain it in this current era of low gas prices? Törnqvist: Our LNG trading is truly global, based on long- and medium-term contracts, both on the supply and delivery sides. We are managing a sizable fleet of ships, and the sheer size of the book creates substantial optionality in the spot market. We believe the LNG market will grow for years to come. In our view, it is an important piece of any future energy mix, vis-à-vis the Energy Transition. EI: Can you afford to keep the three European refineries you own running, or will you have to consider selling or closing them? Törnqvist: Early on during the Covid crisis, we concluded there would be a surplus of refining capacity globally for a long time to come, even after the pandemic subsides, and especially so in Europe. We took the decision to mothball our Antwerp refinery. We will, however, continue terminal activities at the site, as well as assess future development opportunities for the land and existing units. In Rotterdam, we shut down the refinery’s two crude units, and operations will now focus on the desulfurization of high-sulfur products, the production of gasoline and the processing of biofuels. The Ingolstadt facility is a top-quartile European refinery with strong location advantage. EI: Traders such as Trafigura, Vitol and Mercuria have announced ventures to move into renewables. Is this an area you are looking into closely? Törnqvist: We are looking very closely at renewables and see plenty of opportunities. There is no silver bullet to the climate change issue. Many solutions are needed. As far as Gunvor is concerned, we have committed to reduce the carbon footprint of the commodities we’re trading and our industrial processes. We have stopped trading coal and acquired two biofuel plants in Spain. Today, about 50% of our trading is Energy Transition commodities, including biofuels, natural gas and LNG. The commodity mix we are trading has a lower carbon footprint than it used to have. ... And, as a part of the Rotterdam [refinery] processes, we create hydrogen, which we are studying as well. As for investments, we have targeted 10% of net equity to be spent on non-(fossil fuel) energy solutions over the next couple years. We are currently assessing various options. For example, we believe that carbon capture solutions are required to meet zero-emissions goals, given the reality that hydrocarbons will still be a necessary part of the future energy mix. Batteries are also an area of interest because of their need to help manage the intermittent nature of renewables, such as solar and wind ... Power is not a commodity, per se. Renewables, like solar and wind, produce energy, and the “logistics” would include batteries, smart grids, and power lines. Power trading and related investments will be more important for Gunvor as we go forward. There is also a lot of excitement for hydrogen right now, and if there is success with it, it stands a good chance to be commoditized. We shouldn’t forget that at the end of the day all our trading activities need to be done on a commercial basis. Renewables, so far, do not have the same return as oil trading, but there is potential. EI: As banks come under greater pressure to move away from oil, do you see loans becoming harder to come by, or does Gunvor have banking relationships that will endure over the next few years? Törnqvist: We are in constant dialogue with our banking partners, and our aim is to form a common view with them, whereby Gunvor upholds its role in the energy transition. Gunvor was the first energy trader to launch sustainability-linked financing, in which the interest rate is tied to our ability to achieve numerous criteria, such as CO2 emissions reduction in our operations. This is audited by a third-party and, so far, we’ve been successful. Banks will continue to support companies in the energy sector that integrate sustainability and the energy transition in their business model. EI: The traders, and banks, put a much greater emphasis on compliance these days. Has this hindered your ability to develop new business, or has it been beneficial? Törnqvist: During the last decade, we’ve spent millions of dollars building a top-tier, independent compliance department. And we’re working continuously to improve our procedures to mitigate risks in our sector, whether they relate to sanctions, corruption, market conduct, or other areas. We have a zero-tolerance policy. Every employee, including myself, must undergo mandatory annual training. We have also adopted greater transparency standards, including supporting EITI [Extractive Industries Transparency Initiative] on payments to government disclosures. After experiences from the past, we pride ourselves on upholding very rigorous compliance standards, and we do turn away from deals as a result. If we lose business, so be it. EI: And finally, you have been in the trading business for over 30 years. Would you say it gives you the same level of excitement now as it did back in the 80s? Törnqvist: Throughout the years, I have seen oil trading change many times over. I was in the business, working at BP, at the time of the Iranian Revolution. This resulted in massive upheaval in the energy sector and gave rise to independent oil traders. Actually, you can draw some parallels to the thinking in the oil industry then and what we’re seeing today with the energy transition -- the same uncertainties, the same doubts about the future of oil. I feel very privileged to have started from this point in the early days. It provides important perspective on how we formulate a strategy where we align our use of energy, including hydrocarbons, to create a sustainable future, with a focus on climate change. Hydrocarbons will continue to be a necessary part of the future energy mix, but they need to be produced and used in a way that fully manages their emissions.

For the interview at Energy Intelligence

Gunvor Group (“Gunvor”), one of the world’s largest physical energy commodities traders, has closed a new sustainability-linked borrowing base facility (“Facility”) to support operations at Gunvor Refinery Ingolstadt. The EUR 450 million Facility complements Gunvor’s other US $725 million sustainability-linked borrowing base for refining activities in the ARA, and similarly has an interest rate dependent on the company’s year-on-year improvements in multiple sustainability criteria in the areas of “environment”, “social impact” and “governance”. “We’re pleased to be working closely with our banking partners to find new areas of our business for sustainability-linked opportunities,” said Muriel Schwab, Chief Financial Officer, Gunvor Group. “And despite the recent market volatility and uncertainty, it is very promising to see such strong lender support for this approach, as the Ingolstadt facility was heavily over-subscribed.” In 2018, Gunvor was the first energy commodities trading company to close a financing in which the interest rate was dependent on the company’s ability to meet sustainability criteria. Per the deal, Gunvor received a discount on its interest rate as sustainability targets were met; had Gunvor underperformed on the sustainability targets, a premium would have been added to the interest rate. That original facility has been renewed under the same terms. Gunvor continues to view the long-term challenge for companies in the physical energy commodities trading sector to be effectively positioning themselves within the “energy transition.” In 2019, “transitional” commodities (i.e., natural gas, LNG and biofuels) comprised 45% of total trading activity (compared with “traditional” crude oil and oil products), an increase from 28% the year prior. Gunvor also acquired two biofuel plants, and committed to no longer physically trading coal, activities which ceased in 2018. The company is now actively measuring its CO2 footprint while devising a sustainability plan, of which financing is an important aspect. Gunvor is on target to substantially reduce its CO2 footprint in 2020, and will continue to work toward continuous reductions year-over-year. Banks participating in the Ingolstadt Facility included: Bookrunner, Mandated Lead Arranger and Sustainability Coordinator

UniCredit Bank AG

Mandated Lead Arranger

CA Indosuez (Switzerland) S.A
DZ Bank AG Deutsche Zentralgenossenschaftsbank
KfW IPEWX-Bank GmbH

Lead Arranger

Industrial and Commercial Bank of China Ltd., London Branch

Arranger

Bank of China Ltd, London Branch
Commerzbank AG
Erste Group Bank AG
First Abu Dhabi Bank (PJSC)
Raiffeisen Bank International AG

Energy Transition Nyera

Gunvor partners with ClearShift on zero carbon diesel and chemicals

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 […]

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Gunvor Group Ltd updates Board of Directors

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Gunvor partners with yosemite clean energy on green hydrogen

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Air Products and Gunvor to Cooperate on Green Hydrogen Import Terminal in Rotterdam

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Gunvor invests in renewable natural gas business

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

GES is acquiring part of the assets of Stargate Terminal from Gunvor Group and will develop over 20 hectares of vacant land. GES has ambitious plans to develop a large industrial site at Rotterdam for storage solutions for low carbon products to facilitate the energy transition. This is the first deal announced by the newly […]

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Gunvor to cut scope 1 & 2 emissions 40% by 2025

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Gunvor launches new us $540 million biodiesel borrowing base

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Energy Intelligence Interview with Torbjörn Törnqvist

Gunvor: Repeat of Q2 Volatility Hard to See Despite having its business model tested during the first half of 2020 commodities trader Gunvor’s robust risk management and strong market analysis helped it produce its best second quarter ever, according to CEO Torbjorn Tornqvist. Here, Tornqvist explains how Gunvor is well positioned to take advantage in […]

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