14.06.2022
TAALERI BIOINDUSTRY PRESS RELEASE 14 JUNE 2022 AT 10:15
Taaleri's associated company Fintoil signed a significant offtake agreement with Swiss VARO Energy – Taaleri and VARO agree on strategic cooperation
Taaleri's associated company Fintoil has signed a significant offtake agreement with the Swiss company VARO Energy. At the same time, Taaleri and VARO Energy agreed on strategic cooperation. Taaleri owns 24% of Fintoil.
According to the agreement between Fintoil and VARO, VARO will buy from Fintoil crude fatty acid, which can be used to produce second-generation biofuels. The agreement covers a significant part of the refinery's crude fatty acid production. The raw material for crude fatty acid is a by-product of softwood pulp, crude tall oil (CTO), so the refinery does not compete for the raw material with the food or feed chain.
At the same time, Taaleri and VARO agreed on strategic cooperation. The strategy of both companies is based on the energy transition and sustainable development.
“Taaleri and VARO have a similar strategy and common ambitions, so our intention is to develop and deepen our cooperation in several areas,” says Tero Saarno, director of Taaleri Bioindustry. “Taaleri’s vision is to be a Nordic forerunner in alternative investments focusing on sustainability. Bioindustry and renewable energy are among our focus areas.”
“VARO wants to be a frontrunner in offering renewable and carbon-neutral energy solutions to meet our customers’ changing energy needs”, said Dev Sanyal, CEO of VARO. “Through this strategic, long-term partnership between VARO and Fintoil we are able to secure important volumes of feedstock, which plays a critical role in our capabilities to offer sustainable energy solutions to our customers today and in future.”
Fintoil's Hamina biorefinery will become operational in Q3 2022. In addition to crude fatty acids, the plant will refine biochemicals for chemical, food and pharmaceutical industries. The biorefinery has an annual refining capacity of 200,000 tonnes of CTO feedstock. Fintoil aims at a revenue of EUR 150 million and will employ 35 persons directly and an estimated 100 persons indirectly. Fintoil’s refinery utilizes the patented NEXPINUS™ technology provided by Neste Engineering Solutions, which enables more than 40% lower energy consumption in comparison to a traditional tall oil refinery. When completed, the Hamina biorefinery will be the world's fourth largest crude tall oil refinery.
VARO’s mission is to serve its customer’s needs for energy as the world transitions to a new energy paradigm by connecting quickly evolving demand to supply. The company aims to be a leader in the energy transition, offering customers cutting-edge solutions to meet their rapidly changing energy needs. Through a well-established network of resellers and direct distribution channels, VARO distributes a comprehensive range of locally generated energy products and services to its national and international business customers, and end-consumers across Europe and a growing presence internationally. VARO is one of Europe’s largest suppliers of biofuels to meet increasing market demands while continuing to supply diesel, gasoline, jet fuel, and heating oil where it is still needed.
For further information, please contact:
Tero Saarno, director, Taaleri Bioindustry, +358 50 373 1923, tero.saarno@taaleri.com
Florence Lebeau, Head of Communications, +41 79 546 66 31, Florence.lebeau@varoenergy.com
Taaleri in brief
Taaleri is a Nordic investment and asset manager with an emphasis on renewable energy and other alternative investments. We channel capital towards economically profitable undertakings that have a lasting positive impact on the environment and society. We combine capital with talent, expertise, entrepreneurship, and a bold sense of purpose. We are a signatory of the UN Principles for Responsible Investment (UNPRI) since 2010, and we joined the Net Zero Asset Managers initiative in 2021. Taaleri’s vision is to be a Nordic forerunner in alternative investments focusing on sustainability.
Taaleri has two business segments: Private Asset Management and Strategic Investments. Private Asset Management consists of renewable energy, real estate and bioindustry businesses. The Strategic Investments segment includes Garantia Insurance Company Ltd.
Taaleri has EUR 2.3 bn of assets under management in its private equity funds and co-investments. The company has approximately 120 employees. Taaleri Plc is listed on Nasdaq Helsinki.