Under the agreement, VARO and Gunvor will equally share the costs and risks to develop the plant until the final investment decision. Following a joint final investment decision and regulatory approvals, they will form a project company equally owned by both, Gunvor said.
Since VARO's intial announcement on the project in September last year, there has been significant progress and the Front-End Engineering Design phase is expected to be completed in the last quarter this year, the energy trader said.
The manufacturing facility in Rotterdam, with capacity of 350 kt per annum, aims to produce enough sustainable aviation fuel to meet up to 7% of the European Union's requirement by 2030, Gunvor said.
The facility is designed to process various feedstocks and produce either sustainable aviation fuel or hydrotreated vegetable oil, allowing flexibility based on market conditions and regulatory requirements, it said.
Located at Gunvor Energy Rotterdam's brownfield site, the facility will benefit from existing infrastructure, including transport, pipelines, utilities, port facilities, and proximity to key Northern European markets, Gunvor said.
Gunvor operates a 75,000 barrel-per-day oil refinery at Rotterdam.
