Sweden's largest oil refiner and transportation fuels producer, Preem AB has announced that it is deepening its collaboration with the Spanish vegetable oil and animal fats refiner group Lípidos Santiga S.A. (Lipsa). The agreement means that Preem secures access to sustainable raw materials that are important for Preem's conversion to renewable fuel production.
Lipsa will assist with pre-treatment capacity and be responsible for raw material purchases of sustainable raw materials that can then be refined into renewable fuels at Preem’s refineries in Gothenburg and Lysekil.
We are pleased to be able to deepen our collaboration with Lipsa, as access to sustainable raw materials of high quality is an important part of our transition. This takes us one step closer to our goal of producing approximately 5 million cubic meters of renewable fuels by 2030 and achieving net-zero emissions throughout the value chain by 2035, said Eric Westerholm, Head of Planning and Optimization at Preem.
Delivery from Lipsa will begin in 2023 and is expected to reach full volume from 2024.
Preem recently tightened its climate target by ten years and by 2035 the company will achieve climate neutrality along the entire value chain. To achieve the climate goal, it is crucial that Preem has access to large volumes of sustainable raw materials that can be refined into renewable fuels.
As part of Preem’s conversion, the production capacity of renewable fuels will amount to at least 2.5 million m3 by 2026 and reach approximately five million m3 by 2030.