Preem invests SEK 300 million in new biofuel capacity
Swedish fuel company Preem is expanding its biofuel capacity in Gothenburg, Sweden.
The extended facility will increase production capacity for fuels based on green feedstocks
by over 60%. The SEK 300 million project was started earlier this winter.
The investment will not only boost production, it also includes upgrading the Green Hydrotreater (GHT) facility to produce „green diesel‟ suitable for both winter and summer driving conditions. From fall 2015, Preem Evolution Diesel, with one-third renewable content, will be available all year round throughoutSweden.
“We feel there is only one reasonable interpretation of Sweden‟s long-term fuel policy even if clear decisions have not yet been taken. Namely that Sweden should have a significantly higher proportion of green fuels.
This is particularly the case if we are to achieve the government target of all vehicles on the roads in Sweden being fossil fuel independent by 2030,” says Petter Holland, CEO of Preem.
Preem Evolution Diesel is currently based on tall oil, a by-product of the forestry industry. By-products from the forestry and pulp industry offer huge potential to replace a large proportion of fossil fuels used in Sweden.
“Although we are still waiting for a clear signal as to what tax rules and quotas will apply after 2017, we have decided to press ahead anyway and expand our capacity. In our assessment, our product has great market potential. Diesel consumption has risen sharply in recent years and our Evolution Diesel not only
offers good news for the environment, it is also compatible with all diesel engines, both new and old,” adds Holland.
The investment will also make the Preem refineries more competitive. In the longer term, Preem envisages export opportunities for green fuels made in Sweden.
“We have a unique platform for developing and producing renewable and sustainable fuels from our forestry and farming sectors, and with our refineries, we are well positioned to be able to produce standard fuels from green feedstocks in high volumes,” says Holland.
For more information:
Magnus Heimburg, CFO
mobile +46 70 450 10 44