Varo Energy announces agreement to acquire Preem

April 2, 2025

BY Erin Voegele

Varo Energy, a European energy company based in Switzerland, on March 31 announced an agreement to acquire Preem, a Sweden-based petroleum and biofuels company that is developing additional renewable diesel and sustainable aviation fuel (SAF) capacity.

Under the agreement, Varo will acquire Preem Holding AB and Preem AB via the purchase of 100% of the share capital of the parent company, Corral Petroleum Holdings AB, in an all-cash transaction. The acquisition is subject to customary closing conditions and regulatory approvals and is currently expected to close during the second half of 2025.

Advertisement

Advertisement

The transaction includes Preem’s refineries in Lysekil and Gothenburg, Sweden, as well as the company’s storage infrastructure and fuel station network. Preem in late 2023 announced plans to move forward with a conversion project at the Lysekil refinery to produce renewable diesel and SAF. The company also produces renewable diesel at the Gothenburg refinery.

According to Varo, Preem was an early mover in renewable fuel production, investing nearly $1 billion since 2010 in initiatives to produce renewable fuels and reduce carbon intensity throughout the value chain. The company currently has the capacity to produce 300,000 metric tons per year of renewable fuels. Varo estimates renewables capacity will increase to 1.3 million metric tons per year once upgrades are complete at the Lysekil refinery. 

Advertisement

Advertisement

Varo is also working to develop SAF capacity at its refinery in Rotterdam. That project, announced in 2023, is expected to enable 245,000 metric tons per year of SAF production. 

A full copy of the acquisition announcement is available on Varo’s website.

 

Related Stories

NREL releases 2024 assessment of BQ-9000 biodiesel properties

Article image

By Clean Fuels Alliance America

August 15, 2025

NREL announced the findings of the Assessment of BQ-9000 Biodiesel Properties for 2024, the eighth in a series of annual reports documenting the quality of biodiesel from U.S. and Canadian producers participating in the BQ-9000 program.

Read More

Kintetsu World Express Inc. has entered into a new agreement with Shell Aviation regarding the use of SAF. Under this agreement, KWE will adopt Shell Aviation's digital platform "Avelia" to swiftly address shippers' low-carbon transportation needs.

Read More

The U.S. EIA increased its forecast for 2026 renewable diesel production in its latest Short-Term Energy Outlook, released Aug. 12. The 2026 forecast for SAF production was lowered, but the outlook for biodiesel production was maintained.

Read More

Aemetis Inc. released Q2 results, reporting increase revenue when compared to Q1. During an earnings call, company officials detailed progress with the company’s RNG, ethanol, biodiesel, SAF and carbon CCS projects.

Read More

Calumet Inc. on Aug. 8 confirmed its Montana Renewables biorefinery is currently running at full capacity. An initial phase of the company’s MaxSAF initiative remains on track to boost SAF capacity to up to 150 MMgy by mid-2026.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement