Preem selects Topsoe technology to produce renewable diesel, SAF at Lysekil refinery in Sweden

Preem's Lysekil refinery in Sweden (Photo: Preem)

Topsoe, a global technology and solutions provider for the energy transition, has signed a licensing and engineering agreement with Preem, Sweden’s largest fuel company, to produce sustainable aviation fuel (SAF) and renewable diesel using Topsoe’s HydroFlex™ technology.

The demand for SAF is rapidly growing. 

According to the International Energy Agency’s Net Zero Scenario, over 10 percent of fuel consumption in aviation by 2030 needs to be SAF to stay on course for net-zero CO2 emissions by 2050.

In 2022, the International Air Transport Association estimated global SAF production to make up only around 0.1 percent to 0.15 percent of total jet-fuel demand.

At Preem’s Lysekil refinery in Sweden, Topsoe’s HydroFlex™ technology will be utilized in Preem’s IsoCracker, a unit that breaks down molecules into lighter components. 

The unit will have a capacity of 1.2 million cubic meters (317 million gallons) per year for the production of renewable diesel and SAF.

Topsoe will thereby supports Preem’s long-term target of producing 5 million cubic meters (1.32 billion gallons) of renewable fuels and achieving a climate-neutral value chain by 2035.

Once the revamped Lysekil refinery starts operating in 2027, Preem will become one of Northern Europe’s biggest producers of SAF.

The partnership builds on years of cooperation with Preem to produce renewable fuels, including at Preem’s refinery in Gothenburg, Sweden. 

Together, Topsoe and Preem will work to increase production of renewable fuels, SAF included.

“Society needs a significant upscaling of renewable fuels for aviation,” said Elena Scaltritti, Topsoe’s chief commercial officer. “We’re excited to take another step on the path to reduce carbon emissions in the transportation sector and aviation in particular. Together with Preem, we already have a proven track record of delivering impactful results within renewable fuels production, and we’re looking forward to continuing working with Preem on this important task.”

Peter Abrahamsson, Preem’s director of sustainable development, added, “We’re thrilled about the revamp of Lysekil refinery, which is one of the most significant climate investments in Sweden. The demand for sustainable aviation fuels is increasing rapidly, and we are already in dialogue with several major airlines. With this investment, Preem takes another decisive step in the transition from fossil to renewable production. We’re happy to continue working with Topsoe on increasing renewable fuels production.”

With HydroFlex™, customers can convert various fats, oils and greases into drop-in renewable jet and diesel that meet all globally accepted specifications for these fuels.

Topsoe’s HydroFlex™ can be deployed in both grassroots units and revamps for coprocessing or fully renewable applications.

Preem’s refineries in Gothenburg and Lysekil account for about 80 percent of the Swedish refinery capacity and approximately 35 percent to 40 percent of the Nordic capacity.

Together, they have a total refining capacity of over 18 million cubic meters (4.76 billion gallons) per year.