Preem invests a further SEK 5.5 billion into the refinery transition – changing into a number one participant in renewable sustainable aviation gasoline 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 necessary milestone on Preem’s transition journey, as the corporate is phasing out fossil manufacturing in favour of renewable fuels for street and air transport.
The funding allows Preem to turn into the biggest producer of renewable aviation gasoline in Northern Europe, and one of many largest producers of renewable fuels for street transportation. The reconstruction of the services will start in 2024 and is deliberate to be accomplished in 2027 and is anticipated to offer Preem with a further 1.2 million cubic meters of renewable manufacturing capability.
This may be in comparison with the present complete capability of about 530,000 cubic meters per 12 months. On the identical time, Preem is decreasing its fossil gasoline manufacturing capability by the corresponding quantity. In complete, the funding allows a discount in annual fossil emissions on the person stage 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 probably the most 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 probably the most necessary 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 gasoline (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 collection of large-scale initiatives that increase 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 situations and demand. All through the reconstruction, a big variety of contractors are anticipated to return to Lysekil, positively impacting the native enterprise neighborhood in the course of the building interval.
Preem goals to execute the funding amounting to roughly SEK 5.5 billion by leveraging a mix of personal and exterior capital.
The environmental allow course of is ongoing, and the Land and Surroundings Courtroom is anticipated to determine 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 gasoline in Europe, STOCKHOLM, November 27, 2023
