The oil market is contracting overall: between 2009 and 2021, 26 out of 100 refineries in Europe stopped production or were transformed into biorefineries, a shift echoed around the world: in the United States alone, five refineries shut down between 2020 and 2022.
The message is loud and clear for those embedded in the industry: there’s never been a greater pressure to address the transition to renewable energy.
At Oilinvest, the parent company of Holborn and of Tamoil, that message is so key to everything that it does that it even forms its company slogan: ‘Keep Thinking Ahead’.
“Our motivation for moving away from oil is economic as well as ecological,” Managing Director Raouf Bader explains. “This represents a challenge for us, but one we face with enthusiasm and – to coin a bad pun – energy.”
The blue, white and red Tamoil logo is one that drivers across Europe will recognize for its network of petrol stations in Switzerland, Italy, the Netherlands, Germany and Spain. The Dutch-headquartered Oilinvest Group refines crude oil and markets refined oil products under the Tamoil name in Europe, along with another brand, HEM.
Bader was at the helm of Tamoil Switzerland until 2022 and knows the company inside out. It began operations in 1991 and has grown into one of Switzerland’s leading oil companies with a network of 235 service stations (equal to a 5.3 percent share of the market), annual sales of 1.1 million cubic meters, 186 employees and a turnover of US$1.9 billion.
Its wholesale activities include the operation of 14 tank farms that produce over one billion liters of oil products. The company has six affiliated jobbers (an industry term for a company that purchases quantities of refined fuel from refining companies) that distribute heating oil to end-consumers across the country. It also owns two companies in the tank revision business.
In collaboration with
ID Néon
In 2022, Bader was appointed as the CEO of another Oilinvest subsidiary, Holborn Refinery in Hamburg, Germany. The site has been operational since 1987 and processes 4.5 million metric tons of crude oil annually. The refinery is currently undergoing significant upgrades to turn it into one of Europe’s most energy efficient.
Confidence in the Future
Bader explains that OilInvest Group is taking on the renewable energy challenge with a clearly stated objective. “Thirty percent of our EBITDA in 2030 will be generated by non-oil revenue,” Bader says.
Rather than making promises that would be unsustainable to deliver, the strategy to shift its business model toward new energies is following an evidence-based and pragmatic path.
Changes have already taken place. For example, Tamoil’s retail service stations already sell gasoline and diesel containing biofuels produced from various waste products (seven percent in diesel and five percent in gasoline, he specifies) to reduce CO2 emissions.
“We are also permanently analyzing the possibility of blending even more biofuels like Hydrotreated Vegetable Oil (HVO),” he adds.
Further projects are underway that ensure the company is highly flexible and at the forefront of innovation.
“Take hydrogen. Very early on, Tamoil joined the H2 Mobilité Suisse association to analyze the possibilities hydrogen offers as a fuel, even if commercial applications are limited at this point,” Bader explains. “We nonetheless launched a joint venture in Germany to build infrastructure offering hydrogen refueling for fuel cell vehicles, especially heavy trucks, which are difficult to run with batteries.”
In Germany, Bader is overseeing the transition of Holborn into a ‘green’ refinery, which will produce renewable or co-processed diesel products.
“We will use waste from the refinery to generate HVO, while, once upgraded, the refinery will be powered by green hydrogen produced by an electrolyzer run on green electricity,” he explains.
Across the Tamoil network, innovations are in play. In Italy, the company is working on a sustainable aviation fuel project, while a company-wide, in-depth reflection on e-mobility and the pace of the energy transition is currently underway to help navigate the mapping out of the major stages in this fundamental development.
“We plan to substantially expand the electric charging offer for our customers in the coming years,” he says, adding that in Switzerland, Tamoil is already installing chargers throughout its service stations and equipping the roof surfaces of these stations with photovoltaic panels capable of generating electricity.
No Quick Fix
Bader isn’t trying to gloss over the fact that there’s no magic button to press to swap fossil fuels for cleaner alternatives, however.
“We are fully aware that oil-run cars will still be around in 2030; renewing the entire fleet will take time,” Bader acknowledges. “Our role is still to respond to the needs of our clientele now. We are a service company. We ensure that consumers, drivers and non-drivers, are kept supplied throughout the year and whatever the weather with the petroleum products they need.”
This is why the company has joined the Swiss eMobility association, he continues, as it enables Tamoil to publicly affirm its commitment to e-mobility. Membership also provides an opportunity to take part in the consultation process concerning new standards, norms and regulations for charging stations – and to support lobbying activities defending e-mobility developments for the industry and for users.
“Fossil fuels will continue to be used for many years and the legislative environment must take this into account to ensure a transition that secures supply and is economically bearable,” he says.
Much of Tamoil’s renewable energy transition, Bader explains, derives from Oilinvest’s strategy. In line with projections that solar and wind will be the two main sources of energy by 2050, the Group is embarking on large-scale eco-energy projects involving the exploitation of solar energy potential, particularly in the deserts of North Africa, as well as a wind power network in northern Europe.
It is also investing in companies active in solar panel installations (alongside heat pump companies).
“Why not imagine desert regions exporting green electricity instead of petroleum products within a few decades?” Bader asks. “These projects are in their infancy, but we have every confidence in their future.”
Refining the Strategy
Running parallel to the transition to develop, market and supply renewable energies across its network are Tamoil’s sustainability efforts. In Switzerland, no case study better exemplifies its strategy than the dismantling and rehabilitation of a refinery on the Rhône river at Collombey, in the Swiss Canton of Valais.
“When Tamoil was founded in 1990, we took over the assets of the previous owner, which included this refinery,” Bader explains. ]
In 2015, a decision was made to cease refining activities at the site, which was one of only two refineries in Switzerland. “In 2021, we presented a project for the dismantling and rehabilitation of the refinery, which is one of the largest single industrial sites in the entire country at over 120 hectares,” he continues.
The refinery units have now all been dismantled and sold on to be reused. “I must underline that this is quite exceptional and due to their excellent quality,” he says. “Overall, 90 percent of the cement and steel resulting from the entire dismantling operation will be either reused or recycled.”
The next part of the plan is to turn the site into a business park that will retain its industrial vocation, with some space still dedicated to agricultural and forestry use.
“The aim is to ensure a transition to a lighter, cleaner industry, based on new technologies and new energies,” he explains.
The project grants Tamoil a unique opportunity for development along different, cleaner lines and is managed with consistent liaison and coordination with the authorities. Bader explains that careful planning is going into each step, with a truly long-term approach in the management of the development.
“For instance, we are currently running a pilot project with photovoltaic panels at our neighboring depot, to assess the possibility of powering the entire site with solar-generated electricity,” he notes. “We have also financed a study undertaken by a professor from the Swiss Federal Institute of Technology, to examine potential hydrogen production and to analyze synergies with neighboring industrial companies.”
Strength and Flexibility
With a background in engineering, Bader started out his career with industrial consulting groups in the Middle East.
“My career has always developed quite naturally, with each position bringing me learnings to grow into the next role,” he says.
From consulting he went into project and technical management roles while also undertaking a postgraduate specialization in construction management in the United Kingdom at Sheffield Hallam University. After taking a doctorate in business management at the EU Business School in Switzerland to complement his technical knowledge, he says joining Tamoil in an executive capacity was a natural step.
Like any oil industry veteran, Bader is now going through what will be the greatest pivot of his career as the sector embraces renewables. But he also knows a thing or two about agility in the face of change.
“It’s a concept completely woven into the nature of our business,” he says.
“Energy markets can be volatile and are strongly dependent on geopolitical aspects,” he continues. “As a result, our business is obliged to be not only strong but also flexible, like the carbon used for high-performance sailboats.”
Internally, agility and flexibility are the two pillars of Tamoil’s corporate culture. “Change has become a way of life, as we are seeing more, particularly with our transition toward renewable energy,” he says.
As it strives for 30 percent turnover in non-fossil fuels by 2030, the company is pressing on these pillars in order to hit its goals.
“We work on a permanent feedback loop, so that we can incorporate any relevant innovations and improve the projected result at each stage,” he explains.
“Because, the days of set-in-stone project management with five-year projections are long past. Even with such massive and complex projects as the redevelopment of the refinery site in Collombey, we need to stay on our toes: we are proceeding step by step in the development, making sure that each phase is secure, solid and future-proofed before proceeding further.”
The Discipline Disciple
When asked about the best advice he’s received during his career and how it informs his work today, Bader is quick to identify a common thread.
“Discipline is the key to success. Discipline is consistency of action. Small acts of discipline repeated with consistency every single day lead to great achievements. I strive to apply this advice every day, in my work but also in my personal life,” he enthuses.
“It may seem to some a boring or frustrating approach to life, but I find that, on the contrary, it gives me a strong framework so that I can be more creative and flexible. Think of the great poets: they worked in the confines of a haiku or a sonnet, and that very discipline brought them to greater heights of beauty. Flexibility and agility can only work in the context of a stable background, and stability comes from discipline.”
Similarly, the company’s slogan both signifies its approach to the energy transition, but also how it promotes a culture of agility and flexibility.
“For me, ‘Keep Thinking Ahead’ also signifies anticipation, agile thinking and effective execution across all segments of our quite diverse business,” he says. “We need to be able to put ourselves in question and to tailor our offer to the requirements of our business partners and clients in order to build long-term relationships.”
One example is the flexibility shown by Tamoil toward service station partners in finding a business model that suits them, in terms of co-investment, shop development or petrol management.
“Equally, Tamoil takes the necessary time to develop strong relationships with retail partners for our convenience shops,” Bader explains.
“Some 30 percent of Tamoil’s retail business comes from clients using loyalty cards, a huge percentage that indicates to us that the offer suits them and that we have taken their requirements on board. We have found that greater flexibility leads to a more constructive and long-lasting relationship.”
A Network of Key Partners
Discussing its partnerships, Bader says Tamoil’s approach is strictly a win–win, whatever the area. “We carefully select our partners based on their proven industry expertise and strive for long-term collaborations,” he explains.
In the retail sector, for instance, Tamoil concentrates on its core competencies – that is, developing and optimizing the location, technology and supply of the service station arm of the business – while the operation of the station and its shop business are delegated to key partners such as Valora or SPAR.
“Regional and local knowledge can be an important success factor, too,” Bader notes. “So we partner with the local Claret Group, owner of the 13* Pam brand, in the Swiss canton of Valais. For our newest highway stations we are working with Autogrill, the world’s leading provider of food service for travelers.”
By entrusting decision-making in their field to these partners, Tamoil is free to focus on its own area of expertise. “Together, we create the best offer for our customers,” he says.
When it comes to its own activities, Bader explains that Tamoil places great importance on working with competent partners who are able to cover the entire territory, a strategy that drives a trio of benefits. “This allows us to limit the number of partners, benefit from uniform knowledge and build strong ties,” he explains.
In consequence, partnerships lasting more than 20 years are not the exception, he continues, such as those with TSG Switzerland, an expert in petrol station installations and Tamoil’s main installations supplier.
Others include Neovac, active in the monitoring of tanks with leak warning systems, who is a confirmed partner for anything tank security-related, and family-owned ID Néon, entrusted with the signage and look and feel of its stations, keeping them clean and fresh (“literally, by deep cleaning our stations from time to time also”, he says).
“Through constant and continuous exchange over a long period of time, we are able to appreciate each other and establish a relationship of trust, materialized through service-level agreements that bind and satisfy both partners,” he explains.
Then there are the more recent projects in the renewables space, which are leading to new relationships with innovative partners, too, particularly at the Holborn refinery in Hamburg.
“The new electrolyser unit will be constructed and operated by HanseWerk, a subsidiary of the German power company, at their own cost, on land provided by Holborn at the refinery site,” Bader explains.
The unit will use green electricity, such as that sourced from wind farms, to produce green hydrogen. “Holborn will commit to buying 90 percent of the resulting hydrogen at a pre-agreed price for a lengthy period of time,” he says. “The waste heat generated during the production process will be captured, collected and sold to HanseWerk Natur and to other industrial end users such as Mercedes.”
Believe in What You Do
Tamoil’s status as a trusted partner is one of the selling points that offers Tamoil a unique positioning in the market, Bader says. “We can guarantee supply whatever the season or the weather, thanks to our strategically located storage areas in Switzerland,” he explains. “We deliver, and we place our emphasis on what is actually feasible without making sweeping – and empty – promises.”
Add to that its in-depth knowledge of the Swiss market, where it has had a presence for over three decades, along with its reputation for combining superior performance with eco-friendliness.
“We sell premium petroleum-containing advanced additives to reduce emissions and prolong the life of vehicles,” Bader explains. “We aim to optimize the performance and mileage of vehicles, while supporting sustainable practices through our commitment to renewable energy investments and carbon offset programs.”
It’s a complex business operation, but one made simple by a key factor. “We are a large company but still retain a human-sized organizational structure and very fast decision-making processes, combining strength and agility,” Bader says.
Culture at Tamoil is hinged upon a rally cry of ‘believe in what you do’. “Belief boils down to working with people toward the same vision,” he says. “Our corporate culture binds the company together every single day, and has resulted in a very strong staff retention for the industry: about 20 years’ service on average.”
A Social Pandemic
Like all executives, Bader views the COVID-19 pandemic as a very challenging period, from a social perspective as well as from a business one.
“We allowed our staff to work from home and made the same kind of experiments as other companies,” he explains. “We rapidly became conscious of the impact of the social aspect of work, and we were very pleased when people started to return to the office.
“Throughout this entire difficult period, our objective was to continue serving the community by selling our products, particularly heating oil, all the while respecting rules and regulations to protect our people. We continued to play a significant role and to maintain our contribution to society.”
One specificity at Tamoil is that it employs third-party representatives, and they, too, must embody this culture. “Our company is quite unique since we also have service station managers who are not directly employed by us, but who also need to carry and support this culture,” he says.
And shared goals are what binds them. “As always, we believe in taking the time and effort to develop long-term relationships, internally and externally, and that is not possible unless everyone can strive toward a shared goal,” Bader acknowledges.
“That is why finding the right fit with partners, employees and suppliers is so important to us. We take the necessary time at the outset, and we are willing to look for workable solutions with those we believe are aligned with our values.
“We view this as an investment in the company. There are, of course, practical instruments in place – an intranet, company events, a degree of flexibility in working hours and so forth – but this would not have any effect if we did not choose the right people in the first place.”
Driven by Discipline
Having been in the industry for all his career, Bader emphasizes again that what drives him personally every day is discipline.
“The discipline of working day by day, step by step, towards reaching a common goal,” he says. “I believe in working together with people and listening to them, letting them do their job and making sure they feel responsible for their activity by giving them objectives to reach. This is how you develop a team.
“As a leader, you can’t control everything, but if you believe in people’s ideas and give them clear aims, you can develop a different and far more effective form of teamwork, one based on trust rather than constraints.”
And, as business evolves, so do the required leadership styles to navigate its new frontiers. “We find ourselves in a world that is infinitely more complex and more information-driven than in the past, and the recent speeding-up of AI only underlines that fact,” he says.
Where leadership is concerned, that translates to a need for far greater flexibility and openness.
“The traditional top-down leadership style has undergone a profound change and the importance of teamwork has become more evident. Everyone in the company plays a different, yet essential role and you must be willing to be constantly open to new opportunities, to listen to people, to consider their ideas and initiatives, and to make sure that you recognize their contribution,” he says.
Yet there is one overriding mantra.
“At the end of the day, if we all believe in what we are doing, it is easy to find common ground and share common goals.”
