Preem makes major investment in green diesel at the Port of Gothenburg
Since 2010, Preem has produced diesel based on tall oil, a residual product from the forestry industry. The tall oil is shipped from Piteå to the Port of Gothenburg, where it is processed together with fossil-based diesel at the Preem refinery, giving it the same properties as regular diesel, the company said in its press release.
The end-product has a one-third renewable content and is known as Evolution Diesel. Apart from tall oil, other vegetable or animal-derived input materials can be used in the production process, including rapeseed oil.
Preem is set to invest 33,6 million euro at its plant in Gothenburg to increase production of green diesel.
"We take a very positive view of the investment being made by Preem in Gothenburg and we support wholeheartedly the development of more renewable products that is currently taking place at the Energy Port," says Jill Söderwall, Commercial Director at Gothenburg Energy Port.
In general terms, the present annual volume of around 400,000 tonnes of tall oil diesel is expected to double. Expansion of the Preem refinery is scheduled for completion in autumn 2015.
"Our investment is completely in keeping with the times. Sweden needs a much higher proportion of green fuel if it is to meet the government's environmental targets. Diesel consumption has increased substantially in recent years and we feel that our product has significant market potential," says Petter Holland, President of Preem.
At present, tall oil diesel is distributed by sea to other parts of the country and by road tanker to western Sweden. In time, Preem can see the possibility of Swedish-produced biofuels being exported.
Energy Port in GothenburgThe Energy Port in Gothenburg is the largest energy port in the Nordic region. Several refineries and storage companies carry on operations at the Port.
Each year, 2,500 tankers call at the Port and half of all crude oil that comes into Sweden arrives via the Port of Gothenburg. In total, more than 20 million tonnes of oil and other energy products are handled.
It is also the location of the largest depot operation in Sweden, supplying the whole of western Sweden with petrol and diesel and other energy products. In total, 50 per cent of all refined products remain in Sweden whilst the remainder is exported to the world market.
The Port of Gothenburg is the largest port in the Nordic region with 11,000 visits by vessels each year. One-third of Swedish foreign trade passes through the Port of Gothenburg as well as 65 per cent of all container traffic.
The Port of Gothenburg is the only port in Sweden with the capacity to receive the world's largest container vessels and has the broadest range of shipping routes within and outside Europe. The 26 rail shuttles that depart each day mean that companies throughout Sweden and Norway have a direct, environmentally smart link to the largest port in the Nordic region. The Port of Gothenburg has terminals for oil, cars, ro-ro, containers and passengers.