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Preem to invest in new hydrogen plant for renewable fuel production

Swedish oil refiner Preem AB has announced that it is investing SEK 635 million (≈ EUR 65.1 million) in building a new hydrogen plant at its Gothenburg refinery to increase production of renewable fuels. The new hydrogen plant is scheduled for commissioning in February 2019.

Preem is to invest in a new hydrogen facility at its Gothenburg refinery (photo courtesy Preem).

Preem is to invest in a new hydrogen facility at its Gothenburg refinery (photo courtesy Preem).

Preem AB, the largest fuels producer in Sweden, has announced that it is building a new hydrogen plant at its Gothenburg refinery to increase production of renewable fuels. Hydrogen is an important component in the production of renewable fuels.

Commissioning of the estimated SEK 635 million (≈ EUR 65.1 million) investment is scheduled for February 2019 and made possible through a connection to the gas grid.

Remove capacity bottleneck

Hydrogen is currently obtained as a side product from a gasoline component plant, and there has long been a hydrogen deficiency that limited production of renewable fuels at the refinery.

This is a crucial prerequisite for us to increase our renewable production. The new plant means that our renewable production is planned to increase to 200 000 m3 annually and creates the prerequisite for reaching 500 000 m3 on an annual basis in the early 2020s, said Petter Holland, CEO, Preem in a statement.

The new hydrogen plant will have a capacity of 18 500 Nm3 per hour and derived from fossil gas from the Swedegas network in Gothenburg. Swedegas will build a 1.2 km long pipeline line as well as a measurement and control station between the new hydrogen plant and the gas grid.

The gas network has many benefits. To increase the production of biofuels efficiently and safely is in line with our future development, said Johan Zettergren, CEO of Swedegas.

The new plant will be placed in connection with the current process and will cover a surface of 60 x 80 meters. Preem is also planning for a future expansion of the hydrogen plant to further increase the production of green fuels.

The hydrogen is used in the manufacturing of Preem Evolution Diesel with a renewable share of 25 to 40 percent and Preem Evolution Diesel + with over 50 percent renewable content. Evolution fuels can be fueled in all diesel vehicles and mixed with all other diesel engines. It has the same power and the same price as standard fossil standard diesel.

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