Switzerland — Swiss energy company VAROPreem has unveiled a five-year growth plan designed to deliver more than $2 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) by 2030. The company was formed through the combination of Varo Energy and Swedish refiner Preem.
The target would more than double the approximately $1 billion in EBITDA the company generated in 2025. Its strategy comes as Europe confronts tightening fuel supplies, a declining refining base and energy market disruptions stemming from geopolitical conflicts.
Supported by private equity firm Carlyle Group and trading giant Vitol, VAROPreem plans to pursue expansion opportunities in both conventional fuels and sustainable energy.
According to company information reported by Reuters, VAROPreem supplies approximately 10% of Europe’s transport and marine fuel demand across 41 countries and serves 50,000 business customers.
Chief Executive Dev Sanyal said the company was transitioning from a period of transformation into a new phase focused on faster growth.
The plan comes against a challenging backdrop for Europe’s fuel industry. Refinery closures have diminished the region’s refining capacity, while geopolitical tensions have disrupted international supply chains. The US-led war with Iran and the Russia-Ukraine war have contributed to global fuel supply interruptions, including pressures affecting the strategically important Strait of Hormuz and Ukrainian attacks on Russian refineries.
These disruptions have brought fuel security back into focus, highlighting the need for suppliers to maintain reliable supplies across multiple markets.
VAROPreem plans to build its presence in aviation, marine and defense fuels, aiming to increase its market share in these segments from 10% to more than 15% by 2030.
The company also intends to raise its biofuel production capacity by 20% from the 1.3 million metric tons recorded in 2025.
The planned increase is part of a broader effort to expand sustainable energy operations without withdrawing from markets that continue to depend heavily on conventional fuels.
However, VAROPreem does not anticipate that sustainable energy will represent a progressively larger share of its earnings. Instead, it expects sustainable energy to account for more than 50% of total earnings while expanding its conventional and sustainable fuel businesses at an equal pace.
This strategy reflects the company’s expectation that traditional fuels will remain essential, particularly in sectors where alternative energy sources are more difficult to implement.
Defense is among the sectors expected to underpin continued demand for conventional fuels. VAROPreem forecasts that fossil fuel demand from defense-related industries will double over the next decade.
Meanwhile, Europe’s energy crunch has renewed interest in alternatives such as biofuels. Increasing production capacity could help VAROPreem benefit from changes in the energy market while preserving its established fuel supply operations.
Reaching its earnings goal will require the company to sustain growth across its markets and business segments. Its strategy combines efforts to capture a larger share of selected fuel markets with investment in additional biofuel production capacity.
For Europe, VAROPreem’s plans underscore the commercial significance of reliable fuel supplies as refining capacity declines and international supply routes come under pressure.
For the company, the challenge is to take advantage of these conditions while balancing the development of sustainable energy with continued demand for conventional fuels.
VAROPreem has established a target of more than $2 billion in annual EBITDA by 2030. Achieving that objective will depend on how effectively it implements its growth plans and on broader conditions across the energy sector.
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