Pars Terminals, Ukrainian investors to develop renewable diesel, SAF project in Latvia

The Port of Riga in Latvia, on the Baltic Sea. (Photo: Freeport of Riga)

Pars Terminals and investors from Ukraine plan to develop a renewable diesel and sustainable aviation fuel (SAF) project on Kundziņsala at the Port of Riga in Latvia.

The port said renewable diesel and SAF are in high demand in the Baltic state and Europe as they support climate neutrality and green goals, adding that the project will significantly boost Latvia’s export capacity and energy independence from foreign fuel supplies.

“Sustainable thinking, by creating a new, long-term demand renewable fuel production facility in the Freeport of Riga is an economically forward-looking way to increase Latvia’s influence as a sustainable energy producer in the Baltics in a context of declining transit-cargo volumes in the region,” said Kaspars Melnis, Latvia’s minister for climate and energy.

“The renewable fuel plant will strengthen energy independence and create 120 highly skilled jobs while providing Latvian farmers with stable demand for energy-intensive crops and helping Latvia to meet its climate-neutrality goals,” Melnis added.

The main feedstock for the plant will be vegetable oils, according to the port, which added that the planned facility will be the first of its kind in the Baltic region.

The project is being scaled to process approximately 236,000 metric tons of feedstock per year.

It is expected to produce 93,000 tons of renewable diesel and 87,000 tons of SAF per year.

The total cost of the project is estimated at up to 120 million euros (USD$124.7 million) and could be completed in less than two years, “as all the equipment and technology are already available,” the port stated.

“The new plant is a step in the modernization of our business,” said Armands Sadauskis, the owner of Pars Terminals. “With Ukrainian partners we will ensure economic independence from foreign supplies, thus shortening logistics chains and obtaining high added-value products that are currently only imported in the Baltics. This would also benefit our aviation sector, and the Latvian national airline AirBaltic would be a direct beneficiary with immediate, significant economic benefits—especially looking beyond 2030, when at least 20 percent of aviation fuel will have to be renewable.”

The project is an important step towards promoting Latvia’s energy independence and the development of local production based on the resources available in Latvia, the port said.

It will contribute both directly and indirectly to the local economy, improving the competitiveness of Latvian companies.

At the same time, economic cooperation will be developed with Ukrainian investors, which the port noted is particularly important for Latvia and Europe in today’s geopolitical situation.