ZUG, Switzerland | January 16, 2026 – VAROPreem has officially launched as a new entity reshaping the European marine fuel and energy landscape, following the successful completion of VARO Energy’s acquisition of Preem AB. This milestone marks the early fulfillment of the “ONE VARO” transformation strategy launched in 2022, creating a leading force in energy built on large scale and an integrated value chain.
The transaction, which received final regulatory approval this week, positions VAROPreem as a top-tier player in both conventional and renewable energy markets. For the bunkering and marine sector, this consolidation creates a supplier with unprecedented scale across Northern Europe and the Mediterranean.
Key Strategic Highlights of VAROPreem
The newly formed group now commands a significant portion of the European energy value chain:
- Market Dominance: VAROPreem is now the second-largest renewable fuels producer in Europe and ranks among the top six globally.
- Refining Scale: It stands as Europe’s third-largest independent refiner, meeting roughly 10% of European mobility demand across the road and marine sectors.
- Infrastructure: The company operates six strategic manufacturing hubs (Lysekil and Gothenburg in Sweden; Neustadt and Vohburg in Germany; Cressier in Switzerland; and Coevorden in the Netherlands) with access to over 120 terminals serving 33 countries.
- Processing Capacity: The combined assets boast a capacity of 530,000 barrels per day (kbd) of conventional fuels, 1.3 million tonnes per annum (mtpa) of renewable fuels, and 450 GWh of biogas.
Delivering the “Twin-Engine” Strategy
A core pillar of the merger is the “twin-engine” strategy, which balances conventional fuel reliability (Engine 1) with aggressive growth in sustainable energy (Engine 2).
The acquisition has accelerated VARO’s financial targets originally set for late 2026. The company reports that its 2025 pro forma EBITDA is expected to be three times higher than in 2021, with approximately 50% of those earnings derived from sustainable energy sources.
“The creation of VAROPreem marks a defining moment,” said Dev Sanyal, Group CEO of VAROPreem. “We are no longer developing scale; we have achieved it. Together, we combine industrial scale, financial strength, and deep operational expertise to support energy security and resilience across Europe.”
Marine Fuel and Transition Pipeline
For the bunkering industry, the integration of Preem’s Swedish assets, specifically the Lysekil and Gothenburg refineries, is critical. Recent investments, such as the commissioning of the Synsat facility at Lysekil, enable the co-processing of renewable feedstocks. This directly supports the shipping industry’s transition toward lower-carbon marine fuels, including bio-methane and bio-LNG produced at the Coevorden site.
Financing and Leadership
The merger was supported by a massive debt package that attracted 15 new lenders, expanding the company’s syndicate to 30 global institutions.
The new VAROPreem Executive Board:
- Dev Sanyal: Group CEO
- Magnus Heimburg: Deputy CEO and EVP Markets & Customers
- Georges Menane: EVP and Group CFO
- Hugues Bourgogne: EVP Manufacturing, Projects & Technology
- Stewart Peter: EVP Trading & Optimisation
- Theo Pannekeet: EVP Sustainable Energies Value Chain
As the marine industry faces tightening emissions regulations in 2026, VAROPreem enters the market as a primary supplier capable of bridging the gap between traditional fuel oil and the next generation of sustainable marine fuels.
VAROPreem in Brief
Formed by the 2026 merger of VARO Energy and Preem AB, VAROPreem has emerged as a powerhouse in the European energy sector, commanding nearly 10% of the continent’s road and marine fuel demand. Operating a sophisticated “twin-engine” strategy, the company balances a massive conventional refining capacity of over 530,000 barrels per day with an industry-leading commitment to decarbonization.
As Europe’s second-largest producer of renewable fuels, VAROPreem leverages an integrated value chain, spanning six strategic manufacturing hubs and over 120 terminals, to deliver 1.3 million tonnes of HVO and Sustainable Aviation Fuel (SAF) annually. Headquartered in Zug, Switzerland, the group serves over 50,000 business customers across 33 countries, solidifying its role as both a guarantor of current energy security and a primary architect of the transition to a lower-carbon future.
Source: VaroPreem