Sweden’s Preem AB will curb the use of crude oil at the bigger of its two refineries from 2024, when it completes the revamp of a production unit.
(Bloomberg) — Sweden’s Preem AB will curb the use of crude oil at the bigger of its two refineries from 2024, when it completes the revamp of a production unit.
The company’s investments, which include boosting production of fuels from feedstocks other than crude oil, won’t be affected by owner Mohammed Hussein Al Amoudi’s plans to initiate a review of the company that could include a possible sale, Chief Executive Officer Magnus Heimburg said in a phone interview.
“Everything is business as usual. We are progressing with our strategic investments,” Heimburg said, adding that he would stay on at the helm of the firm.
Preem, which operates two refineries in Sweden, plans to all but eliminate crude oil from its processes by 2035. Shell Plc and Neste Oyj have also outlined plans to cut use of crude at their Wesseling and Porvoo refineries as they work toward emission-reduction targets.
Preem’s so-called Synsat unit at its Lysekil refinery will start operating in mid-2024, running on as much as 40% of feedstocks like used cooking oil and animal fats, Heimburg said, declining to say how much it would cut the use of oil.
In the longer term, Heimburg signaled that the Swedish refiner would move toward production of sustainable aviation fuel rather than renewable diesel.
“The further we come to 2030, the more we will target the aviation sector,” he said. Finnish renewable fuels pioneer Neste has also signaled a similar shift in sales as the European Union moves toward electric cars.
Read more: Finnish Fuel-Maker Neste Shifts Sales Focus Amid EU Push for EVs
The EU will allow hydrogen-based synthetic fuels, which aren’t currently produced commercially in Europe, in new cars from 2035. However, they’re more suited to aviation in his view. Synthetic fuels “could be expensive for road use,” he added.
The company also doesn’t expect to make a final investment decision on the planned 50 megawatt electrolyzer — which would make green hydrogen at Lysekil — for a couple of years.
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