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SMELLS LIKE WHITE SPIRIT ETHANOL • GPS AND VARO ARE EXTENDING THEIR COLLABORATION THROUGH FURTHER INVESTMENT IN AMSTERDAM, FOCUSING ON ETHANOL AND RENEWABLE FUELS
GPS GROUP IS to install a new rail line and build three new tanks for ethanol at its bulk liquids terminal in Amsterdam, expanding on its relationship with Varo Energy at the site. The project builds on recent development at the site, where GPS has ambitious plans for growth. In December 2019 GPS almost doubled storage capacity to 282,500 m³ with some 134,000 m³ of Class 1 storage for Varo, which allowed GPS to scale up capabilities and meet growing demand for services at the terminal. The latest plan will take capacity close to 300,000 m³ and will help Varo Energy’s plans to develop business in biofuels and liquefied gases. The expansion will be financed partly
HCB MONTHLY | DECEMBER 2020
through increased debt following a successful refinancing by GPS Amsterdam. Eric Arnold, CEO of GPS, says: “This is an important investment that will open up a whole range of new possibilities to support both our client’s and our own further expansion plans, especially in the important focus area of ESG, where we aim to continue to identify more environmentally friendly logistics alternatives for our clients and sustainable business cases in growth segments such as biofuels and gases.” SUPPORT OF THE PORT The latest round of work also has the support of the Port of Amsterdam, which has worked closely with GPS on the project; the port says the development “fits nicely with our ambition to make as much capacity as possible available for alternative fuels” and that the new rail link will contribute to rail connectivity to and from the port. “Varo and the Port of Amsterdam are important partners in this project and in our future growth plans,” says Arnold. “It is the second expansion investment in our Amsterdam terminal in under a year and represents our commitment to unlocking
the full potential of the site with truly world-class assets that help our clients thrive in a changing environment.” Roger Brown, CEO of Varo Energy, says: “This is yet another important step forward in our strategic partnership with GPS, which I believe shows the commitment from both sides to the success of the Amsterdam Terminal both today and for many years into the future. “Varo already plays an important role in delivering renewable biofuels to its customers across Europe,” Brown adds. “This expansion of the Amsterdam terminal facilities significantly increases our ability to blend and distribute such renewable fuels in line with Varo’s overall growth strategy in this sector.” The new development will expand and secure GPS’ future at the Port of Amsterdam site and will provide a more environmentally friendly alternative mode of transport, GPS says. In addition, this new logistics option will provide greater flexibility to Varo’s supply chain and an important transport alternative to respond to variations in water levels on the Rhine, which have caused occasional interruptions in that supply chain. The project also constitutes an important upgrade to the port infrastructure that will see the storage and blending facilities of GPS connect with the main railway system of the Netherlands and Europe. www.gpsgroup.com varoenergy.com
