Renewable Fuel Production Begins at Preem’s Refinery in Lysekil

For the first time, renewable raw materials are being converted to Swedish Environmental Class 1 diesel at Preem’s refinery in Lysekil. The aim is to annually produce up to 950,000 cubic meters of renewable fuel by 2024.

This is part of a larger project that intends to rebuild the existing Synsat plant for the large-scale production of renewable fuels. To begin with, five percent rapeseed oil will be combined with the fossil raw material for a limited period. This test process is within the conditions of the existing environmental permit and represents an important basis for the refinery’s conversion.

“We are now embarking on a comprehensive restructuring of the refinery in line with Preem’s overall and long-term business strategy, and it is gratifying to be able to start Lyseki’s journey toward becoming a biofuel refinery,” say Refinery Manager Aad van Bedaf.

When the conversion is completed, the plant will be able to receive 40 percent renewable raw materials, with the ambition of eventually reaching even higher levels. The redevelopment will also mean that the corresponding amount of fossil raw material will be phased out of the Synsat plant.

The increased renewable production will play an important role in ensuring Sweden achieves its climate targets. The conversion is estimated to reduce emissions in the entire value chain by between 1.2–1.7 million tons of carbon dioxide each year, of which the largest reduction will take place in road traffic. At the same time, renewable fuel production will be accommodated within existing carbon dioxide emissions from the refinery.

An application to amend the existing environmental permit is planned to be submitted before the end of the year, with investment decisions planned for the summer 2021. The plant is expected to be operational by 2024 at the latest.