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Court rules Preem's Lysekil refinery expansion plans are permissible

In Sweden, the Land and Environmental Court has ruled that oil refiner and renewable fuel producer Preem AB's expansion plans at its Lysekil refinery are permissible.

In Sweden, the Land and Environmental Court has ruled that oil refiner and renewable fuel producer Preem AB’s expansion plans at its Lysekil refinery are permissible (photo courtesy Preem).

In a statement, Preem says it views the message in the ruling as a good step on the road and looks forward to a constructive dialogue during the ongoing process.

We’re pleased that the court has given a positive message. A new environmental permit is crucial for the implementation of the conversion from fossil to renewable production at the Lysekil refinery and is an important part of getting Preem to achieve climate neutrality by 2045, remarked Petter Holland, CEO of Preem.

Preem’s application concerns a new environmental permit for the Lysekil refinery in order to begin the conversion from fossil operations to renewable, which the current environmental permit does not allow. The planned plant is also an important puzzle piece in the phase-out of fossil raw materials and in Preem’s goal of producing 5 million m3 cubic of renewable gasoline, diesel, and aviation fuel by 2030.

However, critics are concerned that the application also includes the development of the refinery’s capacity to upgrade high-sulphur heavy oil to sulphur-free gasoline and diesel albeit with lower environmental impact but also with increased carbon dioxide (CO2) emissions at the refinery.

It is good that the process can now continue forward. We look forward to a continued constructive dialogue during the ongoing political process, said Petter Holland.

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