According to VARO, the agreement with Orim Energy supports the decarbonization of maritime transportation and inland shipping in Northern Europe and contributes to the wider targets set by 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.
The current demand for fuel oil in the ARA region, 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 by 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 decarbonization plans of their shipping customers, the companies said.
Under the agreement, VARO will source, produce, and blend various waste and advanced biofeedstocks 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, said: “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, added: “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 optimize 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.”
Since 2018, VARO has supplied the Port of Rotterdam with HVO100 (100% Hydrotreated Vegetable Oil for use with the Port’s service fleet. Just recently, the partners revealed that they entered into a new agreement to optimize fuel and energy practices.
In 2023, VARO signed an agreement with Höegh Autoliners to supply the company with 100% advanced biofuels for its shipping fleet.
