VARO Energy and ORIM Energy have announced a strategic partnership aimed at providing biofuels to shipping customers in the Port of Rotterdam and the wider Amsterdam-Rotterdam-Antwerp (ARA) region. This collaboration supports the decarbonization efforts of maritime transportation and inland shipping in Northern Europe, aligning with the International Maritime Organization’s (IMO) targets to reduce greenhouse gas emissions from shipping by at least 20% by 2030 and 70% by 2050 compared to 2008 levels.
With the current demand for Fuel Oil in ARA standing at approximately 14 million tonnes per year, the market for B30, a blend of 70% Fuel Oil and 30% biofuels, is expected to grow rapidly with the support of new EU regulations. VARO and Orim aim to meet this increased demand by leveraging VARO’s biofuels trading capabilities and growing manufacturing asset base alongside 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, while Orim will source the fuel and gas oils for blending and deliver the final biofuel blends to customers’ vessels.
VARO has a proven track record in providing biofuels for maritime logistics, having supplied the Port of Rotterdam with HVO100 (100% Hydrotreated Vegetable Oil) since 2018 and signing an agreement with Höegh Autoliners in 2023 to supply 100% advanced biofuels for its shipping fleet.
This partnership is in line with VARO’s strategy to become the preferred partner for customers in the energy transition by offering low-carbon energy solutions to support decarbonization efforts in the maritime sector.
Dev Sanyal, CEO of VARO, highlighted “the importance of meeting the rising demand for blended biofuels in achieving EU and IMO decarbonization targets for shipping. He expressed enthusiasm about the strategic partnership with Orim and its potential to further strengthen VARO’s presence in Rotterdam, marking another step in the company’s journey towards enabling the decarbonization of the maritime sector.”
Edwin Coppens, Managing Director of ORIM Energy, emphasized “the need to scale up with biofuels in response to upcoming EU and IMO regulations. He highlighted the benefits of partnering with VARO, leveraging each other’s strengths to optimize blending expertise and network, increase sourcing and supply capabilities, and strengthen their position in the ARA region.”
Benefits of Marine Biofuels
Marine Biofuels, especially those derived from waste and advanced feedstocks, offer significant reductions in CO2 and other emissions compared to conventional fossil fuels. Their production from organic materials contributes to waste reduction and efficient resource utilization. With lower carbon intensity, biofuels contribute to a cleaner and greener maritime industry while being compatible with existing ship engines and infrastructure.
About VARO Energy
VARO Energy is committed to investing around $3.5 billion over the 2022-26 period, with two-thirds allocated to sustainable energies, aiming for net-zero emissions by 2040. Orim Energy, an independent oil trading company specializing in blending and bunkering marine fuels, has established a leading position as a supplier in the ARA market and is expanding into the Mediterranean.
About ORIM Energy
Orim Energy is an independent oil trading company that specializes in the blending and bunkering of marine fuels. Strategically located in the Netherlands and Malta, Orim has built a leading position as supplier in the Amsterdam-Rotterdam-Antwerp (ARA) market and are expanding into the Mediterranean.
Source VARO Energy