Vattenfall and Preem take their fossil-free hydrogen biofuel collaboration to the next level

According to a study conducted in the spring, the Preem Lysekil plant is very well suited for an electrolysis plant for hydrogen biofuel production. Carbon dioxide emissions can be reduced by at least 80 percent for hydrogen that is produced fossil-free instead of with fossil-based raw materials. An initial 50 megawatt plant will now be investigated.

In January, Preem and Vattenfall began a strategic analysis of the role that fossil-free hydrogen from electrolysis, produced with fossil-free electricity, can play in Preem's ability to produce biofuels on a large scale. The results are very promising to be able to increase Preem's production of biofuels in the coming decade.

Work is now continuing to investigate a first 50MW electrolysis plant at Preem's refinery in Lysekil with the ambition of taking the next step in the spring of 2022.

Preem's goal of producing approximately 5 million cubic meters of biofuels by 2030 can reduce transport emissions by up to 12.5 million tonnes of carbon dioxide, corresponding to approximately 20 percent of Sweden's total emissions. This production transition requires a large-scale supply of hydrogen, where the establishment of one or more electrolysers can play an important role.

“Preem is in the middle of a very ambitious transition journey and fossil-free hydrogen is an interesting technology that can create opportunities for the increased and sustainable production of biofuels,” says Peter Abrahamsson, Head of Sustainable Development at Preem.

The size of the initial plant is governed by the ability to scale up biofuel production and the ability to extract more power from the electricity grid, which affects schedules and costs. The timing of when a facility can be in place depends on several factors, including how long the environmental assessment process takes.

“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 when biofuel production increases. In order to meet Sweden's climate goals, it is crucial to find solutions through partnerships to restructure industrial processes with lower carbon dioxide emissions, it is also completely in line with Vattenfall's goal of enabling a fossil-free life within a generation, says Andreas Regnell, Vattenfall's Strategy Manager.

Facts: hydrogen linked to fuel production

• Vattenfall and Preem are investigating the large-scale production of fossil-free hydrogen in Lysekil.
• Hydrogen is needed in the production of biofuels because the bio-raw material (residual products from the forest or food industry) contains oxygen atoms that need to be removed through processing.
• Hydrogen is used on a large scale in refineries and has traditionally been produced based on fossil raw materials – mainly natural gas and other hydrocarbons.

For further information contact:

Henrik Svensson, Press Secretary, 070-271 11 32, henrik3.svensson@vattenfall.com
Vattenfall’s Press Department, 08-739 50 10, press@vattenfall.com
Preem’s Press Department, 070-450 10 01, press@preem.se

VATTTENFALL is a leading European energy company that for more than 100 years has electrified industries, delivered energy to people's homes and modernized our way of live through innovation and cooperation. We now want to make it possible to live fossil-frree within a generation. This is why we are driving the transition to a sustainable enregy system through investments in renewable production and climate-smart energy soluations for our costumers. We have about 20,000 employees and are active manily in Sweden, Germany, the Netherlands, Denmark and the United Kingdom. Vattenfall is owned by the Swedish state. For mor information: corporate.vattenfall.se

PREEM is Sweden’s largest fuel company. Our vision is to lead the transition toward a sustainable society. By 2030, Preem will produce approximately 5 million cubic meters of renewable fuels, and by 2045 we will be climate neutral throughout the entire value chain. Preem’s refineries are among the most modern and environmentally friendly in Europe with a refining capacity of over 18 million cubic meters of crude oil per year. Our business includes production, sales, distribution, as well as trading and the sale of goods. We have a nationwide service network with just over 520 petrol stations for private and commercial vehicles. Preem AB has just over 1,500 employees, including 950 that work at the refineries. In 2020, Preem's sales amounted to SEK 68.2 billion.