Sweden's largest oil refiner and transportation fuels producer Preem AB has announced that it will apply for a change in the current environmental permit for its Lysekil oil refinery. The company will apply to establish large-scale production of renewable fuels at the refinery, which is estimated to reduce climate emissions by up to 1.7 million tonnes annually.
Following a decision in September 2020 to cancel its proposed Residue Oil Conversion Complex (ROCC) project, Preem is now launching a new project to rebuild the Lysekil refinery to become Scandinavia’s largest producer of renewable fuels.
In a first step, Preem plans to carry out a renovation of the existing Synsat plant, which currently produces low-sulphur diesel fuel.
The redevelopment of the Synsat plant will increase Preem’s renewable diesel production by between 650 000 and 950 000 m3 annually, which is two to three times higher than today’s renewable production capacity at its refinery in Gothenburg.
Preem’s top priority is to start large-scale renewable fuel production at the refinery in Lysekil and it is gratifying that we will now take the first, big step in the refinery’s renewable conversion, said Magnus Heimburg, CEO of Preem.
Critical for Sweden’s traffic emissions reduction
The increased renewable production will play a central role in Sweden achieving its climate goals. The conversion is estimated to reduce emissions throughout the 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.
When the renovation is completed, the plant will have the capacity to handle up to 40 percent renewable raw materials, with the ambition to reach higher levels in the long run.
The redevelopment will also mean that the corresponding amount of fossil raw material will be phased out of the Synsat plant.
Renewable fuels are key to Preem’s overall and long-term business strategy. The project is a central part of Preem’s goal of, while maintaining competitiveness, becoming the world’s first climate-neutral petroleum and biofuel company along the entire value chain by 2045, said Magnus Heimburg.
An application for a change to an existing environmental permit is planned to be submitted before the end of 2020 with investment decisions anticipated for the summer of 2021.
Assuming the project goes ahead as planned, the retrofitted plant would be operational by 2024 at the latest.
