Switzerland-based energy company VARO Energy has revealed plans to invest $600m to construct a large-scale sustainable aviation fuel (SAF) manufacturing facility in the Netherlands.

To be developed at the Gunvor Energy Rotterdam site, the new facility will have a SAF production capacity of 245 kiloton (kt) per annum alongside a blend of bio-naphtha and bio-propane. Its total feedstock capacity will be 350kt per annum.

Fully owned by VARO Energy, the SAF manufacturing facility will feature a pretreatment unit.

SAF, which is produced from waste and renewable biomass sources, is a viable and scalable low carbon solution for the aviation sector.

According to the energy company, the Rotterdam plant will contribute up to 7% of the European Union (EU)’s 2030 SAF target. This is expected to expedite the EU’s decarbonisation agenda in a hard-to-abate sector.

Production from the Rotterdam SAF manufacturing plant is scheduled to begin in Q4 2026.

VARO Energy CEO Dev Sanyal said: “The development of a large-scale SAF manufacturing facility in Rotterdam, at the centre of one of Europe’s most significant aviation hubs, is an important milestone in the development of the ONE VARO Transformation strategy.

“This $600 million investment strengthens our leading position in biofuels in Europe by adding SAF production to our portfolio of solutions and will provide our airline customers with an important route to decarbonisation.”

VARO Energy’s investment is anticipated to generate up to 70 high-skilled green jobs.

Besides, the energy company is supporting the aviation sector’s decarbonisation by manufacturing the SAF that airlines require to achieve their targets.