At the end of November, Minister for Energy Ibrahim Baylan officially opened Preem's new plant for the production of renewable fuels based on a variety of raw materials, including tall oil. The new plant will allow Preem to double its production of renewable fuels, Port of Gothenburg said in a press release.
"Officially opening the new Preem plant is an honour and very inspiring. The work that is being done here is a vital contribution to the government's goal of creating a fossil-free transport sector. It is a challenging goal and innovative and sustainable technologies such as this are exactly what Sweden needs," said Minister for Energy Ibrahim Baylan during the opening ceremony.
Preem is investing 355 million kronor in the new plant at the refinery at the Port of Gothenburg, doubling annual production capacity for renewable fuels from 100,000 to 200,000 tonnes. It will also improve the low-temperature characteristics of tall oil-based diesel, allowing the proportion of renewable fuel in the tanks to remain high all year round.
"This is yet another step towards phasing out fossil-based raw materials in favour of renewables and achieving the goal of Preem's fuel sales on the Swedish market being totally fossil-free by 2030. This is certainly a challenge and if we are to achieve it, further investment and long-term rules will be required," said Petter Holland, Preem Chief Executive.
Jill Söderwall, Vice President and head of commercial operations at the Energy Port in Gothenburg, was at the opening ceremony.
"It is a bold, forward-thinking move by Preem to invest in renewable fuels. Being able to produce an all-year-round diesel that reduces carbon emissions by 46 per cent is an impressive step in the right direction in our endeavour to mitigate climate impact."
The new plant will allow production of diesel using a variety of raw materials, including tall oil. This renewable diesel is known as HVO (Hydrotreated Vegetable Oil). GHT stands for Green Hydro Treater, which is the facility that has made it possible for Preem to produce HVO diesel. Through isomerisation (Iso), linear hydrocarbons are transformed chemically into branched hydrocarbons, giving the fuel excellent low-temperature characteristics. The plant will increase Preem's potential to use more bio-oils in its production. Preem and the waste management company Ragn-Sells have established collaboration in a range of areas, including the production of fuel using recycled fat from restaurants.