Preem takes next step towards supplying green fuel

28.06.2019

Preem, the largest fuel company in Sweden, is taking another important step towards a green fuel supply. At its refinery in Gothenburg, further modifications and adaptations are being made to grow the production of fuel from renewables. The company has enlisted COWI to take overall responsibility for the project.

Preem, among the frontrunners in supplying green fuel, is set to increase its production capacity for renewable raw materials.

“When we increase our production of renewables, we help to reduce emissions from the transport sector. By expanding the renewable production capacity at the refinery in Gothenburg, we are taking a further step towards our vision of producing 3,000,000 cubic metres of renewable fuel by 2030,” says Peter Abrahamsson, refinery manager at Preem.

PREEM has made big investments in recent years to convert its refinery in Gothenburg to process renewable raw materials. At the refinery, raw pine oil, vegetable oils and animal fats are turned into finished renewable diesel (HVO) with the same chemical properties as fossil diesel. HVO stands for hydrotreated vegetable oil, and is a green diesel fuel made by processing renewable raw materials with hydrogen as a catalyst. Because the diesel is produced from renewable raw materials, it reduces the greenhouse effect if it replaces fossil diesel in cars and trucks. Preem’s refinery produces diesel with up to 50 per cent renewable content.

Another end-to-end solution

The project involves several major modifications to existing equipment and a number of new installations. COWI has an EPCM* contract, which means it is responsible for the whole project. COWI’s assignment is multidisciplinary and in addition to the project planning for all technical disciplines, the company will also handle project and assignment management, procurement, and construction and installation management on the site.

“We are working closely together with Preem and have formed a long-term partnership. We are very proud to provide them with another end-to-end solution,” says Jesper Overgaard, project manager at COWI.

The project will run to the end of 2020.

COWI’s fee will be around SEK 60 million.

* EPCM stands for Engineering, Procurement and Construction Management.