The two companies Varo Energy and Orim Energy have entered into a partnership to supply customers in the ARA region with biofuels.
The cooperation is intended to support the decarbonization of maritime transport and inland shipping in Northern Europe. It also contributes to the broader goals of the International Maritime Organization (IMO) to reduce annual greenhouse gas emissions from shipping by at least 20% by 2030 and by at least 70% by 2050 compared to 2008 levels, according to the two companies[ds_preview].
The current demand for fuels at ARA, Europe’s largest bunkering center, is said to be around 14 million tons per year. Supported by new EU regulations, the market for B30, a blend of 70% conventional fuels and 30% biofuels, is expected to grow rapidly by the end of the decade. Through this joint initiative, Varo and Orim are well positioned to meet this growing demand and support the decarbonization plans of their shipping customers, they say.
Varo produces fuel from bio-waste
Varo’s biofuel trading capabilities and growing biofuel production base will complement Orim’s distribution, storage and bunkering capabilities in ARA. Under the agreement, Varo will source, produce and blend various waste and bio feedstocks into high quality bunker specifications. Orim will source the fuels and gasoils for blending and deliver the finished biofuel blends to customers’ vessels.
“Meeting the growing demand for biofuel blends is critical to achieving the EU and IMO decarbonization targets for shipping. Our experience with biofuels combined with Orim’s logistics and bunkering business will help meet this demand in Rotterdam, Europe’s largest port. I am delighted to enter into a strategic partnership with Orim and to further expand Varo’s longstanding presence in Rotterdam. This is another step in our journey to enable the decarbonization of the maritime sector,” says Dev Sanyal, CEO of Varo.
Edwin Coppens, Managing Director of Orim, adds: “The upcoming EU and IMO regulations make it necessary to increase the use of biofuels and ensure the quality of the products. The partnership with Varo allows us to do just that by leveraging 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 marine engine manufacturers. Together we can expand our sourcing and supply capabilities, extend our reach and further strengthen our position in the ARA region.”
