First Renewable Fuel Production Plant in the Baltic Region to Be Built in Riga Port

The first renewable fuel production plant in the Baltic region will be built in Riga Port, producing HVO and SAF to support the EU Green Deal. Image Credit : Freepik

The Port of Riga will soon be home to the first renewable fuel production plant in the Baltic region. This project, backed by Ukrainian investors, aims to produce hydrotreated vegetable oils (HVO) and sustainable aviation fuel (SAF). These renewable fuels support the European Union's Green Deal and climate neutrality goals.

Renewable Fuel Production in Riga

The new plant will use vegetable oils as its main raw material. Each year, it will process 236,000 tonnes of vegetable oil. From this, the plant aims to produce 93,000 tonnes of HVO and 87,000 tonnes of SAF. These high-demand products will benefit both Latvia and the broader European market.

The project, estimated to cost up to €120 million, will take around 20 months to complete. The required technology and equipment are already available, ensuring quick progress.

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Strengthening Latvia’s Energy Independence

Currently, both HVO and SAF are imported into the Baltics. The new plant will change this, making Latvia less dependent on imports. This move will also shorten logistics chains, improving economic efficiency in the region.

Armands Sadauskis, owner of the Pars termināls Ltd, highlighted how the plant will support Latvia’s aviation sector. With airBaltic and other airlines needing renewable fuel by 2030, this facility will provide a local, reliable supply.

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Geopolitical Importance of the Project

The cooperation with Ukrainian investors also has broader geopolitical significance. In today’s uncertain geopolitical climate, fostering economic ties with Ukraine strengthens Latvia's strategic position in Europe.

In conclusion, the establishment of the first renewable fuel plant in the Baltic region is a major step toward a more sustainable future for Latvia and Europe. The plant will provide high-value products, create jobs, and reduce Latvia’s reliance on imported fuels.

Job Creation and Economic Impact

The new renewable fuel plant is expected to create 120 jobs, providing significant employment opportunities in the region. The plant will also help stabilize demand for crops, benefiting local Latvian farmers.

Kaspars Melnis, Latvia's Minister of Climate and Energy, emphasized the plant’s role in helping the country meet its climate neutrality goals. It will contribute to reducing emissions and promoting the use of sustainable energy sources.