Preem starts renewable fuel production trial at Lysekil refinery
For the first time, renewable raw materials are being converted to Swedish Environmental Class 1 diesel at oil refiner's Preem AB’s refinery in Lysekil, Sweden. The aim is to produce up to 950 000 m3 per annum of renewable fuel by 2024.
Sweden’s largest fuel company, Preem operates two refineries – located in Gothenburg and Lysekil respectively – that are among the most modern and environmentally friendly in Europe with a refining capacity of over 18 million m3.
By 2030, Preem aims to produce 5 million m3 of renewable fuels and to achieve climate neutrality by 2045. The company has a nationwide service network with 570 filling stations for private and commercial traffic.
The renewable feedstock processing trial is part of a larger project that intends to rebuild the existing Synsat plant for the large-scale production of renewable fuels. To begin with, five percent rapeseed oil will be combined with the fossil raw material for a limited period.
This testing process is within the conditions of the existing environmental permit and represents an important basis for the refinery’s conversion.
We are now embarking on a comprehensive restructuring of the refinery in line with Preem’s overall and long-term business strategy, and it is gratifying to be able to start Lyseki’s journey toward becoming a biofuel refinery, said Aad van Bedaf, Refinery Manager at Preem.
When the conversion is completed, the plant will be able to receive 40 percent renewable raw materials, with the ambition of eventually reaching even higher levels. The redevelopment will also mean that the corresponding amount of fossil raw material will be phased out of the Synsat plant.
The increased renewable production will play an important role in ensuring Sweden achieves its climate targets. The conversion is estimated to reduce emissions in the entire value chain by between 1.2–1.7 million tonnes of carbon dioxide (CO2) annually, of which the largest reduction will take place in road traffic.
At the same time, renewable fuel production will be accommodated within existing CO2 emissions from the refinery.
An application to amend the existing environmental permit is planned to be submitted before the end of the year, with investment decisions planned for summer 2021. The plant is expected to be operational by 2024 at the latest.