VARO and Orim partner to scale up biofuel supply in the ARA
The two companies expect that demand for B30 biofuel in the ARA hub will grow rapidly towards the end of this decade.
PHOTO: A large container ship moored in a commercial dock at night in Rotterdam, Netherlands. Getty Images
Both companies will collaborate to produce biofuel blends for shipping. Under the agreement, energy firm VARO will manage the sourcing of biofuel feedstocks and their blending, while Orim will procure fuel oil and gasoil needed for biofuel blending.
The finished products will be later sold by the ARA-based bunker supplier Orim.
VARO says that B30 (30% biofuel blended with 70% conventional fuel oil - typically VLSFO) will be the most popular blending ratio among shipowners in the ARA hub.
Rotterdam, which is part of the ARA hub and also the second-biggest bunkering port in terms of volumes, sold 751,000 mt of bio-blended bunkers in 2023. A majority of these sales were for bio-VLSFO, likely B30.
Since 2018, VARO has been supplying B100 (100% hydrotreated vegetable oil) for vessels such as pilot boats operated by Rotterdam’s port authority. Last year, it also signed an agreement with Höegh Autoliners to supply B100 for its ships. However, VARO has not confirmed how much biofuel the company will buy.
By Nithin Chandran
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