The Port of Riga (Latvia) will soon be home to the Baltic region’s first large-scale production facility for renewable fuels, specifically hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF). Developed in collaboration with Ukrainian investors, this innovative project aims to meet growing demand in Latvia and Europe for environmentally friendly energy solutions that align with climate neutrality goals and support energy independence.
Latvia’s Minister for Climate and Energy, Kaspars Melnis, visited the site on November 26th to review the project led by SIA PARS TERMINALS. The planned facility, located in Kundzinsala, will use advanced technologies to produce renewable fuels from natural vegetable oils. This plant will be the first of its kind in the Baltic region, enhancing Latvia’s export capacity and reducing reliance on foreign fuel supplies.
The facility is expected to process ~236,000 tonnes of feedstock annually, yielding 93,000 tonnes of HVO and 87,000 tonnes of SAF. With an estimated project cost of EUR 120 million (~US$127M), the plant could be operational in as little as 20 months, leveraging already available equipment and technology.
This venture represents a significant step in promoting Latvia’s energy independence and local industry development. The plant will contribute directly to Latvia’s economy while fostering economic ties with Ukrainian partners, a priority in today’s geopolitical landscape. The renewable fuels produced will support aviation and other industries seeking sustainable energy alternatives.
Additional renewable energy initiatives were also discussed during the minister’s visit, including the planned development of wind turbine component production and logistics infrastructure in Kundziņsala and a solar panel park in Spilve Meadows. The latter is poised to become one of the largest in the Baltics, capable of generating around 100,000 MWh of green electricity annually.
The Port of Riga’s role in hydrogen research through the “BalticSeaH2 – Baltic-Nordic Hydrogen Valley” project was also highlighted, alongside efforts to modernize port infrastructure to support climate-neutral shipping, including shore power connections and upgrades to the port authority’s technical fleet.
This renewable fuel initiative underscores Latvia’s commitment to sustainability, economic resilience, and energy security within the Baltic region.