Since 2010, Preem has produced diesel based on tall oil, a residual product from the forestry industry. 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. Apart from tall oil, other vegetable or animal-derived input materials can be used in the production process, including rapeseed oil.
Preem is set to invest 33,6 million euro at its plant in Gothenburg to increase production of green diesel.
"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," says Jill Söderwall, Commercial Director at Gothenburg Energy Port.
In general terms, the present annual volume of around 400,000 tonnes of tall oil diesel is expected to double. Expansion of the Preem refinery is scheduled for completion in autumn 2015.
"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," says Petter Holland, President of Preem.
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 can see the possibility of Swedish-produced biofuels being exported.
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