Preem, the largest fuel company in Sweden, and Vattenfall have concluded an agreement to investigate the potential Vattenfall’s providing of hydrogen gas in the large scale production of biofuel for the Swedish market. Preem’s objective is to produce three million cubic meters (793 million gallons US) of renewable fuel yearly by 2030, which would account for the bulk of the reduction in carbon dioxide emissions in the Swedish transport sector.
Vattenfall can provide hydrogen gas required for the production of drop-in biofuels. Preem and Vattenfall will set up a work group and pilot study which are financed by both parties.
Preem and Vattenfall will also review the potential of producing green hydrogen gas by utilizing electricity from hydro and wind power, which give emissions that have very little impact on the climate.
We need to use many different types of raw materials and produce several different types of fuels to replace fossil fuels with renewables. Many different solutions are also needed. Preem’s contribution is to make fuels that are as green and efficient as possible. The collaboration is also a step in our vision to be to the fore in the transition towards a sustainable society.—Petter Holland, CEO and President at Preem
Today Preem already produces non-fossil diesel made from tall oil, a by-product of the forestry industry, but it also intends in the future to produce renewable fuel from sawdust and forestry residues from timber felling and lignin from the wood pulp industry.
Vattenfall is a Swedish, state-owned energy company with around 20,000 employees with operations in Sweden, Germany, the Netherlands, Denmark, UK and Finland.