VAROPreem completed the acquisition of all shares in Sunpine and took ownership of the crude tall oil biorefinery in Piteå, Sweden, after Södra completed the sale of its 25% holding, Sunpine announced. The plant can process about 0.4 million tons of crude tall oil per year.
Södra had been a co-owner of Sunpine since 2008 to develop the market for renewable products based on tall oil. The company sold its stake after Sunpine’s business operations, and its needs for expertise and ownership, changed. The sale allows Södra to focus resources on other areas linked to long-term forest-estate value.
The Piteå plant uses proprietary technology developed over nearly 20 years and a portfolio of registered intellectual property rights. It refines crude tall oil, a renewable by-product from the pulp and paper industry, into a main product that is further processed into renewable fuels such as HVO and SAF at VAROPreem’s production facilities.
The plant’s ISCC-certified product can provide up to 100% lower greenhouse gas emissions compared with fossil fuels. The raw material does not compete with food production or require dedicated agricultural land.
Full ownership gives VAROPreem the ability to integrate the biorefinery with its refining, trading, logistics and customer supply businesses. It also secures access to a limited and traceable renewable feedstock sourced from residual flows of the Swedish forest industry. The facility uses surplus heat for district heating.
The sale contributes to Södra’s financial stability and to priorities aimed at strengthening competitiveness over time. The divestment is expected to have a positive effect on Södra’s group results, which will be reported in the third quarter.
VAROPreem plans to continue investing in the business to strengthen operational flexibility and create further growth potential. Demand for advanced biofuels is expected to increase in road transport, aviation and maritime under regulatory frameworks such as RED III, ReFuelEU Aviation and FuelEU Maritime.