In Sweden, oil refiner and renewable products major VAROPreem has announced that it has completed the acquisition of a 100 percent interest in Sunpine AB, the world's largest Raw Tall Oil biorefinery, producing a high-quality renewable feedstock used to manufacture advanced biofuels including renewable diesel (hydrotreated vegetable oil – HVO) and sustainable aviation fuel (SAF). The renamed company, VAROPreem Sunpine, will build on its world-leading technology and manufacturing capability integrated with VAROPreem's renewable fuels business across Europe.
VAROPreem Sunpine occupies a unique position in one of Europe’s most important renewable fuel value chains. Its ISCC-certified product delivers greenhouse gas (GHG) reductions of up to 99.7 percent compared with fossil fuels, while using a renewable feedstock that does not compete with food production or require dedicated agricultural land.
Operating from its world-scale biorefinery in Piteå, Sweden, VAROPreem Sunpine processes Raw Tall Oil – a renewable by-product of the pulp and paper industry – using proprietary technology.
VAROPreem Sunpine’s main product is then further refined into renewable fuels such as HVO and SAF at VAROPreem production facilities.
Sunpine has spent twenty years developing the technology and expertise needed to convert Raw Tall Oil into advanced biofuel feedstocks. Joining VAROPreem opens an exciting new chapter for our company. Together, we will be able to build on Sunpine’s strong foundations, support future growth and bring our technology and expertise to a broader market. We look forward to working with VAROPreem to continue developing sustainable solutions based on forestry residues, said David Öquist, CEO of Sunpine.
Timely acquisition
For VAROPreem, full ownership of VAROPreem Sunpine secures access to a scarce and highly traceable renewable feedstock, adds distinctive technology and world-scale manufacturing capability, and reinforces Europe’s renewable fuels supply chain at a time when energy security, industrial competitiveness and lower-carbon fuels are becoming increasingly important.
The acquisition brings VAROPreem Sunpine’s capabilities into VAROPreem’s broader refining, trading, logistics and customer supply businesses.
Together, these capabilities strengthen VAROPreem’s ability to connect more of the renewable fuels value chain, from sustainable raw materials and specialist processing through to renewable fuels for customers across Europe.
The acquisition comes as Europe seeks to scale renewable fuels while maintaining energy security and industrial competitiveness.
Growth in renewable fuel demand
Demand for advanced biofuels is expected to grow across road transport, aviation and marine, supported by regulation including RED III, ReFuelEU Aviation and FuelEU Maritime.
VAROPreem Sunpine’s access to domestic raw materials is a core part of what makes the business distinctive.
It takes a residual stream from Sweden’s forest industry and creates a fuel for transport and manufacturing, with surplus heat used in district heating.
This strengthens both supply resilience for VAROPreem’s refineries in Sweden and the company’s ability to supply practical low-carbon solutions that work with existing vehicles, fleets and fuel infrastructure.
VAROPreem intends to continue to invest in the business to strengthen operational flexibility and create further growth potential.
Supports ‘twin-engine’ strategy
The acquisition, the value of which has not been disclosed, supports VAROPreem’s ‘twin-engine’ strategy, supplying both conventional and sustainable energies to mobility and industrial customers.
By adding VAROPreem Sunpine’s Swedish renewable fuels capability, VAROPreem is strengthening its ability to deliver lower-carbon solutions while maintaining the secure and reliable energy supply customers need today.
This is much more than an acquisition. Over almost two decades, Sunpine has built one of Europe’s most distinctive advanced renewable fuels businesses, combining proprietary technology, world-class industrial-scale with access to one of the highest quality renewable feedstocks. This is about creating long-term value. It combines technology, circularity and manufacturing excellence to strengthen Europe’s renewable fuels industry while reinforcing VAROPreem’s position as one of Europe’s leading energy companies. By combining Sunpine with VAROPreem, we are strengthening one of Europe’s most strategic renewable fuels businesses, said Dev Sanyal, Group CEO of VAROPreem.
