Preem and Vattenfall deepen partnership for the production of fossil-free fuel on a large scale
Vattenfall and Preem want to lead the transition towards a sustainable society. A new three-year agreement forms the foundation for increased collaboration around fossil-free hydrogen for biofuel production, electrification and electricity supply.
The agreement provides for increased collaboration between the companies around fossil-free hydrogen for biofuel production, electrification and electricity supply. Work on the first joint project will be intensified with ongoing preparations for fossil-free hydrogen production through water electrolysis at Preem's refinery on the island of Hisingen outside Gothenburg. The aim is to develop a plant with a capacity of 20 MW, which would be Europe's largest water electrolysis plant for the refinery sector.
Preem is Sweden's largest fuel producer and plays a leading role in the transition to more renewable fuels. Vattenfall is Sweden's largest electricity generator and aims to help its customers and society reduce emissions of greenhouse gases and enable fossil-free living within one generation.
"Partnerships with Preem and Swedish industry are crucial if we are to achieve success in the most important issue of our time: meeting the climate challenge. The new agreement deepens, reinforces and broadens the partnership. It gives us the potential to produce fossil-free fuel on a large scale," says Vattenfall's President and CEO, Magnus Hall.
"Hydrogen is an important component in our production of renewable fuels, but supplies of fossil-free hydrogen are low. The partnership with Vattenfall allows us to produce fossil-free hydrogen using electrolysis, which will increase the renewability of our fuels by a few more percent. The plant maximises the currently available grid capacity, which needs to be expanded to reach its full potential," says Preem's CEO, Petter Holland.
Sweden's environmental targets mean that carbon dioxide emissions from the transport sector must fall by 70 per cent between now and 2030, which in turn means that generation of renewable fuels must increase considerably. Preem and Vattenfall have the shared goal of reducing the climate impact of the production of sustainable fuels. This makes society less dependent on fossil fuels.
Preem's objective is to produce three million cubic metres of renewable fuel by 2030, which together with direct electrification would account for the bulk of the reduction in carbon dioxide emissions in the Swedish transport sector. Preem has identified a number of strategic investment opportunities which would enable it to be less fossil dependent, with a significant contribution coming from increased electrification of the production of fossil-free hydrogen.
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PREEM is the largest fuel company in Sweden. Our vision is to lead the transformation towards a sustainable society. Our two refineries are among the most modern and environmentally adapted in Europe, with a refining capacity of more than 18 million cubic meters of crude oil per year. Our business encompasses production, sales, distribution, trading and goods supply. We refine and sell petrol, diesel, heating oil and renewable fuels to companies and consumers in Sweden and Norway. Around two-thirds of our production is exported. We also have a nationwide service network with some 570 fuel stations for private and commercial traffic. Preem employs around 1,500 people, of which 950 work at the refineries. Preem had a turnover of SEK 92 billion in 2019. Read more at www.preem.se.