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VARO completes acquisition of Preem and forms VAROPreem

Combined company creates the second-largest European renewable fuels producer, and one of the top six globally, meeting 10% of European mobility demand for road and marine sectors.

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VARO completes acquisition of Preem and forms VAROPreem

VARO Energy on Friday (16 January) announced that it has completed the Preem AB acquisition, marking the formation of VAROPreem.

VAROPreem Key Highlights: 

  • Scale: With six strategically positioned manufacturing hubs and access to more than 120 terminals, serving business customers across 33 countries. Creates the second-largest European renewable fuels producer, and one of the top six globally, and Europe’s third-largest independent refiner, meeting 10% of European mobility demand for road and marine sectors. 
  • Capability: VAROPreem brings a significant integrated energy value chain across manufacturing, distribution, trading and customers, enabling disciplined execution.
  • Track record: ONE VARO Transformation strategy completed ahead of schedule, with c.50% of 2025 pro forma earnings from sustainable energies and pro forma 2025 EBITDA expected to be three times higher than 2021. VAROPreem is now well positioned to deliver material synergies. 

The creation of VAROPreem brings together two complementary companies, VARO Energy and Preem AB. With the acquisition complete, VAROPreem is now one of Europe’s most significant energy companies, combining deep industrial capabilities with global trading reach to serve mobility and industrial customers.   

With extensive distribution infrastructure and access to more than 120 terminals, the new company owns six strategic manufacturing facilities. In Sweden, it operates Lysekil and Gothenburg. In Germany it holds a majority interest in both Neustadt and Vohburg. Finally, it owns Cressier in Switzerland and Coevorden in The Netherlands. Combined, these six manufacturing hubs have a processing capacity of 530 kbd of conventional fuels, 1.3mtpa of renewable fuels and 450 GWh of biogas. VAROPreem also owns 100% share in elexon, a leading European developer of commercial vehicle charging. 

Recent investments underline the company’s transition growth pipelines, including the commissioning of the Synsat facility at Lysekil, enabling the co-processing of renewable feedstocks and the Coevorden site producing bio-methane and bio-LNG. VAROPreem will continue to operate Preem’s assets with a clear focus on security of supply, resilience, and continuity of service, reflecting their strategic role within Europe’s energy systems.  

VAROPreem will build on the proven “twin-engine” strategy, supplying both conventional (Engine 1) and sustainable (Engine 2) energies to mobility and industrial customers. Introduced by VARO Energy in 2022, the five-year strategy targeted a tripling of EBITDA, with 50% of earnings from sustainable energies. Following the transaction, VAROPreem expects earnings to be balanced across the two engines, with approximately half generated from conventional energies and half from sustainable energies. 

The combined company brings together the industrial scale of an established energy producer with the innovation and capabilities of a renewables leader. This scalable model supports disciplined investment and portfolio evolution in line with customer demand and market dynamics, while enhancing returns.  

VAROPreem brings together strong financing and end-to-end delivery expertise to build and operate energy infrastructure in Europe. With conventional demand remaining strong and sustainable energies expanding, the company is focused on two priorities: keeping supply reliable and funding the next wave of transition investments. This approach supports energy security now and accelerates progress toward a lower-carbon system. 

Dev Sanyal, Group Chief Executive Officer of VAROPreem, said: “The creation of VAROPreem marks a defining moment for VARO and Preem. Together, we have created one of Europe’s most significant energy companies, built on the dedication of colleagues whose work has made this possible. VAROPreem combines industrial scale, critical infrastructure, financial strength, and deep operational expertise to support energy security and resilience across Europe.

“With EBITDA now three times higher than when we began our transformation, we are no longer developing scale; we have achieved it. VAROPreem is well positioned to deliver reliable, lower carbon energy across Europe. And while this completion brings one chapter to a close, it also lays the foundations for the next phase of our growth.” 

The newly established Executive Board brings together senior leaders from both VARO and Preem, combining expertise across manufacturing, commercial strategy and operations, and reflecting the integration of the two businesses. It will comprise: 

  • Dev Sanyal as Group Chief Executive Officer
  • Magnus Heimburg as Deputy Chief Executive Officer and EVP Markets & Customers  
  • Georges Menane as EVP and Group Chief Financial Officer
  • Hugues Bourgogne as EVP Manufacturing, Projects & Technology
  • Stewart Peter as EVP Trading & Optimisation
  • Theo Pannekeet as EVP Sustainable Energies Value Chain
  • Eric Westerholm as EVP Strategy & Transformation
  • Susanne Stenman as EVP Data & Information Technology
  • Gilles Vollin as EVP Integration, People & Communication 

The transaction was fully financed through a debt package that attracted 15 new lenders, expanding VAROPreem’s lending syndicate to 30 institutions. 

With participation from banks across Europe, the USA, Japan, Southeast Asia, Middle East, and South Africa, the financing underscores broad market confidence in VAROPreem’s strategy and in the creation of the company through the combination of VARO Energy and Preem AB.  

 

Photo credit: VARO Energy
Published: 19 January, 2026

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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