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Historic deal for Preem: Exporting self-produced renewable diesel to the Netherlands

Preem's Gothenburg, Sweden, plant (Photo: Preem AB)

Sweden's largest fuel company, Preem, began its transition to renewable production 10 years ago. Now, a historic deal has been finalized.

 


A fully renewable hydrotreated vegetable oil (HVO), also known as renewable diesel, produced at the Gothenburg refinery has been exported for the first time in the company's history.

 


Preem said the event is an important milestone on the company's journey towards a climate-neutral value chain by 2035.

 


Preem is currently undergoing the biggest transition in the company’s history.

 


By restructuring production at the refineries in Lysekil and Gothenburg, the plan is to achieve a production capacity of 2.5 million cubic meters (660 million gallons) of renewable fuel by 2027, followed by a subsequent doubling of capacity by 2035.

 


The primary focus is on phasing out fossil fuels and replacing them with sustainable aviation fuel (SAF) and biofuels adapted for road transport (HVO).

 


The fully renewable HVO, which is produced at the refinery in Gothenburg, stands out as a unique product with excellent cold-flow properties, making it particularly well-suited for the winter climate in the Nordic region and northern Europe.

 


Additionally, it is produced from residual feedstock, free of palm oil and palm fatty acid distillates (PFAD), generating considerable interest as the initial load of self-produced HVO100 was prepared for market release.

 


The buyer of nearly 2.4 million gallons of fully renewable HVO was Shell in the Netherlands.

 


“It feels fantastic to conclude the year with this deal,” said Eric Westerholm, head of trading for Preem. “We are proud to produce a unique product that attracts substantial interest, not least in Europe. Few competitors can match the quality of our product.”

 


Preem’s Green Hydro Treater plant in Gothenburg is already certified by the International Sustainability and Carbon Certification System as a dedicated HVO plant, enabling the sale of HVO100 on a European market.

 


While Preem has previously been a considerable HVO importer, the growing production of renewable fuel is creating new sales opportunities.

 


“The demand for this type of product is high across Europe,” Westerholm said. “This sale marks a significant shift for Preem, transitioning from an importer to an exporter of HVO. It represents a positive milestone in our journey towards a climate-neutral value chain.”

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