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

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Dec 20, 2023, 06:30 ET

STOCKHOLM, Sweden, Dec. 20, 2023 /PRNewswire/ -- Sweden's largest fuel company, Preem, began its transition to renewable production ten years ago. Now, a historic deal has been finalized. A fully renewable HVO, produced at the Gothenburg refinery, has been exported for the first time in the company's history, 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 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 renewable 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 refrigeration 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 PFAD, generating considerable interest as the initial load of self-produced HVO100 was prepared for market release. The buyer of 9000 m3 of fully renewable HVO was Shell in the Netherlands.

- "It feels fantastic to conclude the year with this deal. 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", says Eric Westerholm, Head of Trading.

Preem's GHT plant in Gothenburg is already ISCC certified as a dedicated HVO plant, enabling the sell 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. 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", says Eric Westerholm.

FACTS

The HVO is manufactured at Preem's GHT plant (Green Hydro Treater) in Gothenburg.

The product qualifies within European standard EN15940 and the raw materials comply with EU sustainability requirements (defined in the Renewable Energy Directive, REDIII and Annex IX). It is based on residual products, free from palm oil and PFAD and meets the criteria for double counting.

For more information about Preem, please contact:
Preem Press Office
[email protected]
+46 (0)70-450 10 01