Earlier this year, Vattenfall AB and Preem AB (both Stockholm, Sweden) instigated a strategic analysis of the role of fossil-free hydrogen from electrolysis, produced using fossil-free electricity, could play for Preem’s potential to produce biofuels on a large scale.
Work continues to investigate the potential of the first 50 MW electrolysis plant at Preem’s Lysekil refinery with the aim of moving on to the next phase during the spring of 2022.
Preem’s goal of producing about 5 million cubic meters of biofuels by 2030 can reduce transport emissions by up to 12.5 million tonnes of CO2, corresponding to about 20 percent of Sweden’s total emissions. This transition in production will require large-scale supply of hydrogen, and an expansion of one or more electrolysers can play a major role.
“Preem is in the middle of an ambitious transition journey. Fossil-free hydrogen is an interesting technology that lends potential to increased, sustainable production of biofuels,” says Peter Abrahamsson, Head of Sustainable Development at Preem.
The size of the first plant is governed by the possibility of scaling up biofuel production as well as obtaining greater output from the electricity grid, which will have an impact on the schedule and costs. A number of factors determine when the new plant can be in place, such as how long the environmental assessment process will take.
“It is very promising that fossil-free electricity has the potential to replace fossil raw materials and thereby reduce emissions from Preem’s hydrogen production, as biofuel production increases. To reach Sweden’s climate targets, it is vital to partner up to find solutions for transitioning industry processes to lower CO2 emissions. It is also fully in line with Vattenfall’s target to enable fossil-free living within one generation,” says Andreas Regnell, Vattenfall’s Head of Strategy.