Vopak Accelerates Investments in New Energies and Sustainable Feedstocks
Multinational tank storage operator Vopak will invest a total of €2 billion to expand its new energies, sustainable feedstocks, and industrial and gas terminals portfolio by 2030. The company also intends to improve the performance of its portfolio, targeting an operating cash return of at least 10% by 2025.
Setting out strategic priorities at its Capital Markets Day in Rotterdam, the Netherlands, on Jun. 8, Vopak said it will allocate €1 billion toward new energies and sustainable feedstocks. It will increase the share of zero-carbon and low-carbon energy, and sustainable feedstocks at its existing locations, while also developing new infrastructure for the introduction of “vital products of the future”, such as hydrogen, ammonia and CO2 long duration energy storage.
This investment, said Vopak, will not only shape the company’s own future, but also that of energy hubs while making a positive contribution to the transition within key industrial clusters. Looking forward, it expects that by 2025, its portfolio will have more gas, industrial and new energies infrastructure and relatively less oil and chemical distribution.
Vopak said it will plans to spend another €1 billion on growing its base in industrial and gas terminals, further supporting a “long-term and steady” cash flow generation. It will continue to invest in growing global gas markets and expand its network of LNG and LPG terminals at strategic locations, aiming to further grow and maintain its position as market leader.
Key trends shaping Vopak’s markets in the coming decades include a 13% growth in the world’s population and 10% rise in gas demand by 2030, average annual growth of 4.5% in global manufacturing, and a fivefold rise in hydrogen demand by 2050.
Author: Elaine Burridge, Freelance Journalist
