VAROPreem acquires the world’s largest Raw Tall Oil bio-refinery, strengthening Europe's renewable fuels supply chain
[Zug, 09 July 2026]: VAROPreem today announces that it has completed the acquisition of a 100% interest in Sunpine, the world's largest Raw Tall Oil bio-refinery, producing a high-quality renewable feedstock used to manufacture advanced biofuels including Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF). The renamed company, VAROPreem Sunpine, will build on its world-leading technology and manufacturing capability integrated with VAROPreem's renewable fuels business across Europe.
Key highlights
- Industrial scale: World's largest manufacturing facility for Raw Tall Oil in Piteå, Sweden, with the capacity to process approximately 400 thousand tonnes annually.
- Distinctive technology: Nearly two decades of proprietary R&D, supported by VAROPreem Sunpine’s registered IP portfolio to deliver one of the most competitive feedstock for the production of renewable fuels such as HVO and SAF.
- Strategic value chain: Full ownership enables VAROPreem greater optimisation across the integrated renewable fuels value chain, from processing sustainable raw materials through to the renewable fuels that customers use today.
VAROPreem Sunpine occupies a unique position in one of Europe's most important renewable fuel value chains. Its ISCC-certified product delivers greenhouse gas reductions of up to 99.7% compared with fossil fuels, while using a renewable feedstock that does not compete with food production or require dedicated agricultural land.
Operating from its world-scale bio-refinery in Piteå, Sweden, VAROPreem Sunpine processes Raw Tall Oil - a renewable by-product of 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 in VAROPreem manufacturing facilities.
For VAROPreem, full ownership of VAROPreem Sunpine secures access to a scarce and highly traceable renewable feedstock, adds distinctive technology and world-scale manufacturing capability, and reinforces Europe's renewable fuels supply chain at a time when energy security, industrial competitiveness and lower-carbon fuels are becoming increasingly important.
The acquisition brings VAROPreem Sunpine's capabilities into VAROPreem's broader refining, trading, logistics and customer supply businesses. Together, these capabilities strengthen VAROPreem's ability to connect more of the renewable fuels value chain, from sustainable raw materials and specialist processing through to renewable fuels for customers across Europe.
The acquisition comes as Europe seeks to scale renewable fuels while maintaining energy security and industrial competitiveness. Demand for advanced biofuels is expected to grow across road transport, aviation and marine, supported by regulation including RED III, ReFuelEU Aviation and FuelEU Maritime.
VAROPreem Sunpine's access to domestic raw materials is a core part of what makes the business distinctive. It takes a residual stream from Sweden's forest industry and creates a fuel for transport and manufacturing, with surplus heat used in district heating. This strengthens both supply resilience for VAROPreem's refineries in Sweden and the company’s ability to supply practical low-carbon solutions that work with existing vehicles, fleets and fuel infrastructure.
VAROPreem intends to continue to invest in the business to strengthen operational flexibility and create further growth potential.
The acquisition supports VAROPreem's ‘twin-engine’ strategy, supplying both conventional and sustainable energies to mobility and industrial customers. By adding VAROPreem Sunpine's Swedish renewable fuels capability, VAROPreem is strengthening its ability to deliver lower-carbon solutions while maintaining the secure and reliable energy supply customers need today.
Dev Sanyal, Group Chief Executive Officer of VAROPreem, said:
“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, world-class industrial scale with access to one of the highest quality renewable feedstocks.
This is about creating long-term value. It combines technology, circularity and manufacturing excellence to strengthen Europe's renewable fuels industry while reinforcing VAROPreem's position as one of Europe's leading energy companies.
By combining Sunpine with VAROPreem, we are strengthening one of Europe’s most strategic renewable fuels businesses.”
David Öquist, Chief Executive Officer of Sunpine, said:
“Sunpine has spent twenty years developing the technology and expertise needed to convert Raw Tall Oil into advanced biofuel feedstocks. Joining VAROPreem opens an exciting new chapter for our company.
Together, we will be able to build on Sunpine’s strong foundations, support future growth and bring our technology and expertise to a broader market. We look forward to working with VAROPreem to continue developing sustainable solutions based on forestry residues.”
Notes to editors
About Sunpine former shareholders
Sunpine was previously a joint venture between VAROPreem (25.1%), Sveaskog Förvaltnings Aktiebolag (25.1%), Södra Skogsägarna ekonomisk förening (25.1%) and Lawter Europe BV (24.7%).
Sveaskog is a state-owned company and Sweden’s largest forest owner, owning 14% of Sweden’s forest land.
Södra is Sweden’s largest forest owners’ association and an international forest industry group that refines the forest raw material supplied by its members.
Lawter Europe BV is part of Lawter, a pine chemicals company within Japan-based Harima Chemicals Group, specialising in bio-based pine chemical products.
For further information, please contact
VAROPreem Communications
Angel Nemeth (Zug) / Mattias Holmqvist (Stockholm/Lysekil)
Phone: +41795129421 / +46722245855
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
About VAROPreem
VAROPreem is a leading European energy company formed through the combination of VARO and Preem. It operates across manufacturing, trading and logistics with a balanced portfolio spanning conventional and sustainable fuels. With six manufacturing hubs, access to more than 120 terminals, and serving business customers in 33 countries, VAROPreem plays an important role in delivering energy security and lower carbon solutions for its customers.
