Swedish fuel company Preem on Nov. 27 announced it will invest SEK 5.5 billion ($532.82 million) to convert its refinery in Lysekil, Sweden, to produce renewable diesel and sustainable aviation fuel (SAF). 

According to Preem, the investment decision involves reconstruction of the refinery’s so-called IsoCracker plant (ICR) to produce renewables rather than fossil diesel. Reconstruction activities are scheduled to begin in 2024 and be complete in 2027. The environmental permit process is ongoing, the company said, with the Land and Environment Court expected to make a decision in late spring 2024.

The refinery currently has the capacity to produce 530,000 cubic meters per year. Following the planned reconstruction, the Lysekil facility is expected to have the capacity to produce 1.2 million cubic meters of renewable fuels. 

The Lysekil conversion project is the second in a series of large-scale projects that Preem is planning to complete and is expected to boost the company’s total renewable production capacity to approximately 2.5 million cubic meters annually. A project to convert Preem’s Synsat refinery is ongoing and expected to be complete next year.