Green diesel investment at Gothenburg
Swedish oil company, Preem, is investing around €33.6m to redevelop its refinery at the Port of Gothenburg, where it has produced diesel-based tall oil since 2010.
The investment will result in a doubling of production of diesel with renewable content – a fuel that is expected to replace fossil-based motor fuels more and more.
“Our investment is completely in keeping with the times. Sweden needs a much higher proportion of green fuel if it is to meet the government’s environmental targets. Diesel consumption has increased substantially in recent years and we feel that our product has significant market potential,” said Petter Holland, president, Preem.
“We take a very positive view of the investment being made by Preem in Gothenburg and we support wholeheartedly the development of more renewable products that is currently taking place at the Energy Port,” added Jill Söderwall, commercial director at Gothenburg Energy Port.
The tall oil is shipped from Piteå to the Port of Gothenburg, where it is processed together with fossil-based diesel at the Preem refinery, giving it the same properties as regular diesel.
The end product has a one-third renewable content and is known as Evolution Diesel.
At present, tall oil diesel is distributed by sea to other parts of the country and by road tanker to western Sweden. In time, Preem says it can see the possibility of Swedish-produced biofuels being exported.