Vopak to allocate EUR1B to grow its industrial and gas terminals

Royal Vopak, the world’s leading independent tank storage company based in Rotterdam, The Netherlands, will accelerate its portfolio investments towards new energies and sustainable feedstocks by allocating EUR1 billion (USD1.04 billion) in growth capital to these activities by 2030. 

This will not only shape the future of Vopak, but also positively contribute to the transition within key industrial clusters and shaping of the energy hubs of the future. The share of zero-carbon and low-carbon energy and sustainable feedstocks at Vopak’s existing locations will be increased and new infrastructure for the introduction of the vital products of the future will be developed. 

Here Vopak’s focus is on infrastructure solutions for low-carbon and renewable hydrogen, ammonia, CO2, long duration energy storage and sustainable feedstocks. Those terminals within the Vopak network that store traditional fuels and feedstocks will be well positioned to handle low carbon substitutes.

During its Capital Markets Update held on June 8, 2022, in Rotterdam, the company said that by 2025, Vopak expects the share of proportional capital employed in industrial and gas to further increase, while the share of oil and chemical will gradually decline. The update features Vopak’s strategic priorities and financial framework. 

Vopak will grow its base in industrial and gas terminals by allocating EUR1 billion (USD1.04 billion) to these activities by 2030. This will further support a long-term and steady cash flow generation. Vopak will continue to invest in the growing global gas markets and expand its network of LNG and LPG terminals at strategic locations. Vopak aims to further grow and maintain its position as market leader in industrial terminals. 

Vopak aims to improve the performance of the portfolio and targets an operating cash return of at least 10% by 2025. Operating cash return is defined as proportional operating cash flow over proportional capital employed and reflects the increased importance of free cash flow and joint ventures in its portfolio.

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