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Preem invests a further SEK 5.5 billion into the refinery transition – changing into a number one participant in renewable sustainable aviation gas in Europe.
Preem’s Board of Administrators has determined to take a position roughly SEK 5.5 billion to repurpose the prevailing refinery in Lysekil. The funding represents an essential milestone on Preem’s transition journey, as the corporate is phasing out fossil manufacturing in favour of renewable fuels for highway and air transport.
The funding permits Preem to turn out to be the most important producer of renewable aviation gas in Northern Europe, and one of many largest producers of renewable fuels for highway transportation. The reconstruction of the services will start in 2024 and is deliberate to be accomplished in 2027 and is anticipated to supply Preem with a further 1.2 million cubic meters of renewable manufacturing capability.
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This may be in comparison with the present complete capability of about 530,000 cubic meters per yr. On the similar time, Preem is decreasing its fossil gas manufacturing capability by the corresponding quantity. In complete, the funding permits a discount in annual fossil emissions on the person degree by 2-3 million tons of CO2e, and 200,000 tons of CO2e domestically on the refinery in Lysekil.
Magnus Heimburg, CEO mentioned:
We’re thrilled that Preem has dedicated to one of the crucial substantial local weather investments in Sweden.
“The demand for sustainable aviation fuels is quickly rising, and we’re already in discussions with a number of main airways. Each elevated consciousness and EU laws drive the market. By this funding, we’re additionally positioning Sweden as one of the crucial essential producers of sustainable aviation fuels in Europe.”
The funding resolution includes Preem’s reconstruction of the so-called IsoCracker plant (ICR) on the refinery in Lysekil. Presently used for diesel manufacturing, following the reconstruction, the plant will shift its focus to producing sustainable aviation gas (SAF) and renewable diesel (HVO).
“With this funding, Preem takes one other essential step within the transition from fossil to renewable manufacturing,” Magnus Heimburg continues.
The funding is the second in a sequence of large-scale initiatives that broaden Preem’s complete renewable manufacturing capability to roughly 2.5 million cubic meters yearly.
The primary, the Synsat challenge, is ongoing and is anticipated to be accomplished in 2024, with a renewable manufacturing capability of roughly 1 million cubic meters. In complete, the 2 investments quantity to roughly SEK 10 billion.
The initiatives function the muse for Preem’s long-term manufacturing goal of about 5 million cubic meters of renewable fuels and the institution of a climate-neutral worth chain by 2035.
“By repurposing present services, we’re leveraging the operations and infrastructure already constructed at and across the refinery. That is by far essentially the most sustainable technique for our firm to contribute each economically and environmentally to the transition,” concludes Magnus Heimburg.
The funding enhances the competitiveness of Preem’s refinery in Lysekil, aligning it with future market circumstances and demand. All through the reconstruction, a big variety of contractors are anticipated to return to Lysekil, positively impacting the native enterprise group in the course of the development interval.
Preem goals to execute the funding amounting to roughly SEK 5.5 billion by leveraging a mixture of personal and exterior capital.
The environmental allow course of is ongoing, and the Land and Surroundings Court docket is anticipated to resolve on the matter within the late spring of 2024.
Preem invests a further SEK 5.5 billion into the refinery transition – changing into a number one participant in renewable aviation gas in Europe, STOCKHOLM, November 27, 2023