Preem Oks $527.5M repurposing of Lysekil to produce SAF and HVO

In Sweden, Preem’s Board of Directors has decided to invest approximately $527.5 million to repurpose the existing refinery in Lysekil. The investment represents an important milestone on Preem’s transition journey, as the company is phasing out fossil production in favor of renewable fuels for road and air transport.

The investment enables Preem to become the largest producer of renewable aviation fuel in Northern Europe, and one of the largest producers of renewable fuels for road transportation. The reconstruction of the facilities will begin in 2024 and is planned to be completed in 2027 and is expected to provide Preem with an additional 1.2 million cubic meters of renewable production capacity. This can be compared to the current total capacity of about 530,000 cubic meters per year. At the same time, Preem is reducing its fossil fuel production capacity by the corresponding amount. In total, the investment enables a reduction in annual fossil emissions at the user level by 2-3 million tons of CO2e, and 200,000 tons of CO2e locally at the refinery in Lysekil.