VAROPreem acquires world's largest crude tall oil biorefinery, strengthening Europe's renewable fuels supply chain

[Zug, July 9, 2026]: VAROPreem today announced that the company has completed the acquisition of all shares in Sunpine, the world’s largest crude tall oil biorefinery. Sunpine produces a high-quality renewable feedstock used to produce advanced biofuels, including HVO, a type of renewable diesel, and SAF, sustainable aviation fuel. The renamed company, VAROPreem Sunpine, will build on its world-leading technology and industrial production capacity as an integrated part of VAROPreem’s renewable fuels business in Europe.

Main points

• Industrial scale: The world's largest crude tall oil refining facility is located in Piteå, with a capacity to process approximately 400,000 tons per year.
• Distinctive technology: Nearly two decades of proprietary research and development, supported by VAROPreem Sunpine's portfolio of registered intellectual property rights, enables one of the most competitive raw materials for the production of renewable fuels such as HVO and SAF.
• Strategic value chain: Full ownership gives VAROPreem greater opportunities to optimize the integrated value chain for renewable fuels, from processing sustainable raw materials to the renewable fuels that customers use today.

VAROPreem Sunpine has a unique position in one of Europe's most important renewable fuels value chains. The company's ISCC-certified product provides up to 99.7 percent reduction in greenhouse gas emissions compared to fossil fuels, while being based on a renewable raw material that does not compete with food production and does not require dedicated agricultural land.

At its large-scale biorefinery in Piteå, VAROPreem Sunpine refines crude tall oil – a renewable by-product from the pulp and paper industry – using proprietary technology. VAROPreem Sunpine’s main product is then further refined into renewable fuels, such as HVO and SAF, at VAROPreem’s production facilities.

For VAROPreem, the full ownership of VAROPreem Sunpine secures access to a limited and highly traceable renewable feedstock. The acquisition also adds distinctive technology and production capacity on a world scale, strengthening Europe's renewable fuels supply chain at a time when security of energy supply, industrial competitiveness and fuels with a lower carbon footprint are becoming increasingly important.

The acquisition integrates VAROPreem Sunpine’s capabilities with VAROPreem’s broader refining, trading, logistics and customer supply businesses. Together, these capabilities strengthen VAROPreem’s ability to connect a larger part of the renewable fuels value chain, from sustainable feedstock and specialized refining to renewable fuels for customers across Europe.

The acquisition comes as Europe works to scale up renewable fuels while maintaining energy security and industrial competitiveness. Demand for advanced biofuels is expected to increase in road transport, aviation and maritime, supported by regulatory frameworks such as RED III, ReFuelEU Aviation and FuelEU Maritime.

VAROPreem Sunpine’s access to domestic raw materials is a key part of what makes the business different. The company takes advantage of a residual flow from the Swedish forest industry and converts it into fuel for transport and industrial production, while using surplus heat in district heating. This strengthens both the security of supply for VAROPreem’s refineries in Sweden and the company’s ability to deliver practical solutions with a lower carbon footprint that work with existing vehicles, fleets and fuel infrastructure.

VAROPreem intends to continue investing in the business to strengthen operational flexibility and create further growth potential.

The acquisition supports VAROPreem's 'twin-engine' strategy, where the company delivers both conventional and sustainable energy to customers in mobility and industry. By adding VAROPreem Sunpine's Swedish renewable fuels capacity, VAROPreem strengthens its ability to deliver solutions with a lower carbon footprint, while maintaining the secure and reliable energy supply that customers need today.

Dev Sanyal, CEO of VAROPreem, says:

“This is much more than an acquisition. Over almost two decades, Sunpine has built one of Europe's most distinctive advanced renewable fuels businesses, combining proprietary technology and world-class industrial scale with access to one of the highest quality renewable feedstocks.

This is about creating long-term value. It combines world-class technology, circularity and production expertise to strengthen Europe's renewable fuels industry, while solidifying VAROPreem's position as one of Europe's leading energy companies.

By combining Sunpine with VAROPreem, we strengthen one of Europe's most strategic businesses in renewable fuels.”

David Öquist, CEO of Sunpine, says:

“Sunpine has spent twenty years developing the technology and expertise required to convert crude tall oil into advanced biofuel feedstocks. Becoming part of VAROPreem opens an exciting new chapter for our company.

Together we can build on Sunpine's strong foundation, support future growth and take our technology and expertise to a broader market. We look forward to working with VAROPreem to continue developing sustainable solutions based on forest-based residual products.”

Information for the editorial team

About VAROPreem

VAROPreem is a leading European energy company formed through the merger of VARO and Preem. The company operates in production, trading and logistics, with a balanced portfolio that includes both conventional and sustainable fuels. With six production facilities, access to more than 120 terminals and corporate customers in 33 countries, VAROPreem plays a key role in delivering energy security and lower carbon footprint solutions to its customers.

About Sunpine's former shareholders

Sunpine was previously a jointly owned company between VAROPreem, (25.1 percent), Sveaskog Förvaltnings Aktiebolag, (25.1 percent), Södra Skogsägarna economic association, (25.1 percent), and Lawter Europe BV, (24.7 percent).

Sveaskog is a state-owned company and Sweden's largest forest owner, with 14 percent of Sweden's forest land.

Södra is Sweden's largest forest owners' association and an international forest industry group that processes the forest raw material supplied by its members.

Lawter Europe BV is part of Lawter, a tall chemical company within the Japan-based Harima Chemicals Group, specializing in bio-based tall chemical products.

For further information, please contact:

PRODUCTSPreem Communications
Angela Nemeth (Zug) / Mattias Holmqvist (Stockholm/Lysekil)
Phone: +41795129421
Email: angela.nemeth@varopreem.com / mattias.holmqvist@varopreem.se

Brunswick Group
Will Medvei and Scott Durant
Phone: +44 (0)20 7404 5959
Email: varopreem@brunswickgroup.com