Preem awards FEED verification to Worley for renewable diesel, SAF project in Sweden
- Worley
- 1 day ago
- 2 min read
Worley announced Sept. 8 that it has been awarded a contract by Preem for front-end engineering design (FEED) verification for the planned conversion of the IsoCracker (ICR) plant at the Lysekil refinery in Sweden.
The project aims to transform the plant from conventional diesel production to the production of renewable diesel and sustainable aviation fuel (SAF)*.
The FEED verification was scheduled to begin in August and the contract includes a roll over into the engineering, procurement and construction-management phase, anticipated to start in early 2026, pending Preem’s final-investment decision.
Currently focused on traditional diesel, the Lysekil plant conversion will help position Preem as the largest producer of SAF in Northern Europe while also becoming one of the region’s leading producers of renewable fuels for road transportation.
Worley will lead the FEED verification from its office in Sweden, supported by expertise from across the global Worley network.
The scope of work includes the complete conversion of the existing ICR unit—a refinery processing unit traditionally used to produce lighter, high-value products from hydrocarbons.
At Lysekil, the unit will be repurposed to produce renewable fuels based on vegetable oils and animal fats, marking a significant step away from fossil-based production.
“This award marks a significant steppingstone for our operations in Sweden and the Nordics,” said Jan Narvestad, senior vice president for Worley Nordics.
“The scale and ambition of this project highlight how Worley can actively contribute to driving sustainable change in close partnership with our customers,” Narvestad said.
Preem estimates the refinery conversion could reduce annual emissions by 2 million to 3 million metric tons of CO2-equivelant (CO2e) at the end-user level, and by approximately 200,000 tons of CO2e annually at the refinery itself.
*Editor’s Note: Topsoe’s HydroFlex™ technology will be used in Preem’s IsoCracker at the Lysekil refinery. The unit will have the capacity to produce approximately 317 million gallons of renewable diesel and SAF per year.
