Preem is retrofitting its refinery in Lysekil, Sweden, to produce renewable diesel and sustainable aviation fuel (SAF). / SOURCE: Preem
January 23, 2024
BY Erin Krueger
Topsoe on Jan. 23 announced it has signed a licensing and engineering agreement with Swedish fuel company Preem to provide its HydroFlex technology for renewable diesel and sustainable aviation fuel (SAF) production to Preem’s refinery conversion project in Lysekil, Sweden.
Preem in November 2023 announced plans to invest SEK 5.5 billion ($532.82 million) to convert its Lysekil refinery to produce renewable diesel and SAF. According to Preem, the investment decision involves reconstruction of the refinery’s IsoCracker plant (ICR) to produce renewables rather than fossil diesel.
The refinery currently has the capacity to produce 530,000 cubic meters per year. The revamped IsoCracker unit will utilize Topsoe technology and boost capacity to 1.2 million cubic meters per year (22,000 barrels per day) of renewable fuels.
Reconstruction activities are scheduled to begin this year with renewable fuel production currently expected to commence in 2027. Once the revamped Lysekil refinery starts operating, Preem will become one of Northern Europe’s biggest producers of SAF.
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“Society needs a significant upscaling of renewable fuels for aviation,” said Elina Scaltritti, chief commercial officer at Topsoe. “We’re excited to take another step on the path to reduce carbon emissions in the transportation sector and aviation in particular. Together with Preem, we already have a proven track-record of delivering impactful results within renewable fuels production, and we’re looking forward to continuing working with Preem on this important task.”
“We’re thrilled about the revamp of Lysekil refinery, which is one of the most significant climate investments in Sweden,” said Peter Abrahamsson, director of sustainable development at Preem. “The demand for sustainable aviation fuels is increasing rapidly, and we are already in dialogue with several major airlines. With this investment, Preem takes another decisive step in the transition from fossil to renewable production. We’re happy to continue working with Topsoe on increasing renewable fuels production.”
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