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Vattenfall and Preem continue biofuel collaboration

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Energy Global,

In January 2021, Preem and Vattenfall instigated a strategic analysis of the role of fossil-free hydrogen from electrolysis, produced using fossil-free electricity, in Preem's potential to produce biofuels on a large-scale. The results for increasing the company’s production of biofuels in the next decade are very promising.

Work continues to investigate the potential of the first 50 MW electrolysis plant at Preem's Lysekil refinery with the aim of moving on to the next phase during the spring of 2022.

Preem's goal of producing about 5 million m3 of biofuels by 2030 can reduce transport emissions by up to 12.5 million t of CO2, corresponding to about 20% of Sweden's total emissions. This transition in production will require large-scale supply of hydrogen, and an expansion of one or more electrolysers can play a major role.

"Preem is in the middle of an ambitious transition journey. Fossil-free hydrogen is an interesting technology that lends potential to increased, sustainable production of biofuels," says Peter Abrahamsson, Head of Sustainable Development at Preem.

The size of the first plant is governed by the possibility of scaling up biofuel production as well as obtaining greater output from the electricity grid, which will have an impact on the schedule and costs. A number of factors determine when the new plant can be in place, such as how long the environmental assessment process will take.

"It is very promising that fossil-free electricity has the potential to replace fossil raw materials and thereby reduce emissions from Preem's hydrogen production, as biofuel production increases. To reach Sweden's climate targets, it is vital to partner up to find solutions for transitioning industry processes to lower CO2 emissions. It is also fully in line with Vattenfall's target to enable fossil-free living within one generation," says Andreas Regnell, Vattenfall's Head of Strategy.



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