Leading Scandinavian airline SAS and Sweden’s largest fuel company Preem signed a letter of intent to partner on the production of renewable jet fuel from forestry residue and other biomass wastes in conjunction with Preem’s capacity expansion at its Gothenburg refinery.
Production startup is estimated for 2022, with the total capacity for biofuels to be more than one million cubic meters (264 million gallons US), of which a subset will be biojet.
SAS has set a target to use all renewable jet fuel in its domestic flights by 2030.
Preem’s strategy includes the development of biofuels from waste products from the Swedish forest and also from waste products from the community at large. Preem’s goal is to manufacture 3 million cubic meters (793 million gallons US) of biofuels by 2030.
SAS and Preem intend to enter more detailed and binding agreements by this September.
Preem is Sweden’s largest producer of fuel; mearly half of all fuel consumed in Sweden comes from Preem. Preem has begun planning a new hydrogen production plant at the Gothenburg refinery to accommodate the increase in renewable fuel production. Hydrogen is a key component in the production of renewable fuels, such as Preem Evolution Diesel. Preem is also planning another project that, together with new hydrogen production plants, will increase Preem’s renewable fuel production capacity by 60%.