Sweden: Preem to Reconstruct Refinery for Renewable Fuel
Swedish refiner Preem AB, a wholly owned subsidiary of Corral Petroleum Holdings AB (CPH), aims to become the largest producer of renewable aviation fuel in Northern Europe and a major producer of renewable fuels for road transport.
For this purpose, the company has entered into a loan agreement totaling approximately 240 million Euro (equivalent to around 2.8 billion Swedish Krona) with the Swedish Export Credit Corporation and Crédit Agricole Corporate & Investment Bank. “This loan falls under the National Debt Office’s ‘green credit guarantees’ program,“ Preem informed on its homepage. It is the second credit guarantee to Preem under the government’s credit guarantee program for green investments.
According to the company, the loan guarantee is intended to fund its investment at the Lysekil refinery for the production of renewable diesel (HVO100) and sustainable aviation fuel (SAF). “It is an investment in production that positions Preem to become the largest producer of renewable aviation fuel in Northern Europe and one of the largest producers of renewable fuels for road transportation.”
The total cost of Preem’s investment stands at around 5.4 billion Swedish Krona, the refiner informed in May this year. The reconstruction of the facility, currently producing diesel, was announced to begin in 2024 and is scheduled for completion by 2027. The plant is expected to increase the company’s renewable production capacity by 1.2 million cubic meters, compared to the total capacity of renewable fuels in 2023, which was approximately 530,000 cubic meters.
“The reconstruction is crucial for reducing fossil carbon dioxide emissions,” Lina Stolpe, CFO of Preem, was quoted. “According to our projections, emissions in end-user sectors could decrease by up to three million tons annually.“
(Published in GLOBAL RECYCLING Magazine 2/2024, Page 16, Photo: falco / pixabay.com)
