New hydrogen gas facility connected to the Swedegas network drives up production of renewable fuels

With a new hydrogen gas facility in Gothenburg – officially opened yesterday by Minister for Energy and Digital Development Anders Ygeman – Preem is set to increase its production of renewable fuels. This has been made possible by connecting the facility to the Swedegas network.

“Supporting the transition in the transport sector to renewable fuels is one of our most important tasks,” said Johan Zettergren, Swedegas Chief Executive.

By investing in and developing a flexible gas infrastructure, Swedegas has the capability and ambition to support the switch taking place throughout the country to renewable forms of energy. The connection to Preem is an example of an investment where gas is needed both as a fuel and as a raw material, in this case the production of Preem Evolution Diesel.

“The connection to the gas network is essential if we are to increase production of renewable fuels, and if Preem is to continue to contribute to the ongoing transition towards a sustainable society,” said Mattias Backmark, Head of Business Development at Preem.

In recent times, two projects in particular have formed the nucleus of the Swedegas investment programme. One is the facility at the Port of Gothenburg, where ships can bunker liquefied gas. The other is the connection of Preem’s new hydrogen gas facility to the gas network. Swedegas has built a gas pipeline, complete with a metering and regulation station, between the Preem refinery – the site of the new facility – and the gas network. The facility came into operation in March this year.

“It is vitally important for us that our investment programme lays the foundation for the future. Some 20 per cent of the gas transmitted in our system already consists of biogas. By 2030 the proportion of renewables will be 30 per cent, rising to 100 per cent by 2045 at the latest,” said Johan Zettergren.

Preem’s Evolution fuel can be used by all diesel-powered vehicles and can be mixed with all other forms of diesel. Preem Evolution Diesel has an average renewable content of just over 20 per cent, and in the case of Preem Evolution Diesel Plus it is over 50 per cent. Using Preem Evolution Diesel Plus instead of a standard fossil diesel results in a 44 per cent reduction in carbon emissions.

Preem’s aim initially is to increase production of renewable fuels to 220,000 cubic metres per year.

“We will gradually scale up renewable production and the new facility is a crucial step along the way. The aim is to produce 3,000,000 cubic metres of renewables by 2030,” said Mattias Backmark.

For further information, please contact Saila Horttanainen, Vice President, Communications and Sustainability, Swedegas, +46 70 622 76 06.

Fact file

Swedegas is an infrastructure company that invests in smart energy systems. The company owns the gas transmission network, transporting energy to distributors and directly connected customers. Extending from Dragør in Denmark to Stenungsund in Sweden, the network supplies 33 municipal areas with gas, as well as industrial enterprises, combined heat and power plants, and filling stations. Swedegas is investing in new infrastructure for biogas, hydrogen gas, and liquefied gas (LNG/LBG).