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  • Writer's pictureRon Kotrba

Production of bio-oil from sawdust begins at Pyrocell plant in Sweden


Bio-oil from sawdust produced at the Pyrocell plant in Gävle, Sweden, above, will be used to make renewable diesel and gasoline at Preem's refinery in Lysekil, Sweden. (Photo: Preem)

Production of bio-oil from sawdust at Pyrocell, jointly owned by Setra and Preem, has begun. The Pyrocell plant is located next to the Setra Kastet sawmill in Gävle, Sweden. Residual sawdust from Setra’s industrial process is converted into pyrolysis oil, which is then refined into renewable diesel and gasoline at Preem’s refinery in Lysekil, Sweden. The plant will produce around 25,000 metric tons of bio-oil per year, which corresponds with the annual fuel consumption of 15,000 passenger cars, according to Preem.


“Pyrocell is a unique industrial investment that enables a sustainable value chain from forest to tank,” says Pontus Friberg, acting chair of Pyrocell. “We are replacing fossil fuels and contributing to an increased proportion of renewables in fuels that result in lower carbon dioxide emissions.”


Pyrocell was formed in 2018 after an initial feasibility study in 2016 and receiving investment funding in 2017. Construction started in March 2020 and production began this month.

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