Swedish fuel company Preem plans to invest approximately US$$527.5 million in retrofitting its Lysekil refinery to produce hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), as reported by PR Newswire.
The project will include the reconstruction of the refinery's IsoCracker (ICR) plant, previously used for diesel production, according to the Nov. 27 report.
In addition to providing Preem with an additional renewable production capacity of 1.2 million m³, adding to its current capacity of 530,000 m³/year, the company will proportionally reduce its fossil fuel production, as indicated in the November 27 report .
Scheduled to begin next year, construction of the new facility is expected to be completed in 2027.
“We have seen a rapid increase in demand for sustainable aviation fuels. We are already in discussions with several prominent airlines,” said Magnus Heimburg, CEO of Preem.
Preem will invest €1 billion to expand SAF production capacity
This investment represents the second in a series of large-scale projects. They aim to increase Preem's total renewable production capacity to around 2.5 million m³/year, as detailed in the report.
The previously announced Synsat project is underway. It is expected to be completed next year, reaching a renewable production capacity of approximately 1 million m³/year, as reported.
“By optimizing existing facilities, we are capitalizing on the operations and infrastructure already established at the refinery and its surroundings,” added Heimburg.
Preem has set an ambitious target: to produce 5 million m³/year of renewable fuels by 2035, with a climate-neutral value chain. The company currently operates two refineries in Sweden: Preemraff Göteborg in Gothenburg and Preemraff Lysekil near Lysekil. Together, these refineries have a total refining capacity of more than 18 million m³/year.
Based in Stockholm, Preem exports its products internationally, mainly to northwest Europe.
Source: Oils & Fats International
