Varo Energy and Orim Energy are partnering to provide shipping customers in the Port of Rotterdam – and wider Amsterdam-Rotterdam-Antwerp (ARA) region – with biofuels.
The agreement supports the decarbonisation of maritime transportation and inland shipping in Northern Europe. It also contributes to the wider targets set by the International Maritime Organisation (IMO) to reduce the total annual GHG emissions from shipping by at least 20% by 2030 and at least 70% by 2050, compared with 2008 levels.
Current demand for fuel oil in ARA , Europe’s largest bunkering hub, is approximately 14 million tonnes per year. Supported by new EU regulations, the market for B30, a blend of 70% fuel oil and 30% biofuels, is expected to grow rapidly to the end of the decade. As a result of this joint initiative, Varo and Orim will be well positioned to meet this increased demand and support the decarbonisation plans of their shipping customers.
Varo’s significant biofuels trading capabilities and growing biofuel manufacturing asset base will complement Orim’s extensive distribution, storage and bunkering capabilities in ARA. Under the agreement, VARO will source, produce and blend various waste and advanced bio feedstocks to high quality bunker specifications. Orim will source the fuel and gas oils for blending and deliver the final biofuel blends to customers’ vessels.
Dev Sanyal, CEO of Varo, says: ‘Meeting rising demand for blended biofuels is critical to achieving the EU and IMO’s decarbonisation targets for shipping. Our experience in biofuels, combined with Orim’s logistics and bunkering operations, will help meet this demand at Rotterdam, Europe’s largest port facility. I am delighted to be entering into a strategic partnership with Orim and to further build on VARO’s long-established presence in Rotterdam. This is another step in our journey to enable the decarbonisation of the maritime sector.’
Edwin Coppens, managing director of Orim, adds: ‘Upcoming EU and IMO regulations drive the need to scale up with biofuels and ensure quality assurance going forward. Partnering with VARO allows us to do just that, using each other’s strengths to optimise our blending expertise and network. We will benefit from VARO’s extensive experience with biofuels, which includes joint testing with leading ship engine suppliers. Together, we can increase our sourcing and supply capabilities, extending our reach and further strengthening our position in the ARA region.’
