The creation of VAROPreem brings together two complementary companies, VARO Energy and Preem AB. With the acquisition complete, VAROPreem can combine 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 530 000 bpd of conventional fuels, 1.3 million tpy of renewable fuels, and 450 GWh of biogas. VAROPreem also owns 100% share in elexon, a 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 CEO of VAROPreem, said: “The creation of VAROPreem marks a defining moment for VARO and Preem. 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.”