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Preem and SAS announce biojet cooperation

In Sweden, oil refiner Preem AB (Preem) and national air carrier SAS AB (SAS) have signed a Letter of Intent (LoI) to produce renewable aviation fuel, also known as biojet. SAS has the ambition to replace the current volume of aviation fuel used for domestic flights with biojet fuel by 2030.

Preem and SAS have announced intentions to produce renewable aviation fuel and develop the Swedish biojet market.

According to a statement, the Letter of Intent means that the two companies will collaborate to jointly ensure the production of biojet fuel in conjunction with Preem’s planned capacity expansion of its Gothenburg refinery. The preliminarily estimated startup is 2022 and the total production capacity for biofuels is estimated at over one million m3, of which a portion can be biojet fuel for aviation.

Preem has a product strategy to develop biofuels from residues from Swedish forests, but also from residues from society as a whole. Preem’s goal is to produce three million m3 of biofuels by 2030.

Preem’s vision is to be a leader in the transition to a sustainable society, and we are actively working to develop our production of Swedish biofuels. We look forward to working with SAS to expand our large-scale production to include biojet, said Sören Eriksson, Development Engineer at Preem.

SAS has a clear strategy to reduce its climate-impact emissions on a long-term basis and intends to be among the leading airlines in the transition to lower climate impact. One of the airline’s goals is to replace the current volume of aviation fuel used in Swedish domestic flights with biojet fuel by 2030.

SAS’s sustainability and restructuring work is about investing in more environmentally efficient aircraft, flying in an environmentally friendly manner, and using fuel based on renewable sources. This statement of intent is an important part of the puzzle in our work towards a long-term more sustainable aviation, said Lars Andersen Resare, Sustainability Manager at SAS.

According to the Swedish Environmental Protection Agency (Naturvårdsverket), the domestic transportation sector accounts for around 33 percent of the country’s fossil greenhouse gas (GHG) emissions. Aviation’s share within transportation was almost 3.3 percent or 553 000 tonnes of carbon dioxide equivalents (CO2 eq) in 2016. SAS has an estimated 40 percent share of the domestic aviation market.

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