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The fuel producer has chosen to withdraw the application to expand the controversial Preemraff oil refinery. Climate activist Greta Thunberg applauds after the decision.
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This was confirmed by the company in a press release on Monday morning.
The decision means that the project which, according to the plan, was to expand the refinery by around NOK 15 billion, is now being phased out. The company claims that the project is settled based on future financial prospects.
The news was first announced by CEO Magnus Heimburg at Preem in an interview with Swedish Radio.
– I think this is a very important decision. It says very clearly that we are now turning our attention to accelerating the transition to renewable fuel production. So for me, it feels great to present this decision today, Heimburg tells the channel.
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– Great victory of the climate movement
There has been a regular storm around the controversial development at Lysekil, on the coast near the Norwegian border.
In mid-September, six Greenpeace activists were arrested after entering the refinery area. Then Greenpeace had tried for several days to stop a Norwegian-owned tanker that was supposed to call at the refinery.
On Twitter, climate activist Greta Thunberg applauds after the decision.
– Swedish oil company Preem has withdrawn its request to expand its oil refinery. An extension that would have made it impossible for Sweden to remain within the Paris Agreement. What a great victory for the climate and environmental movement, writes Thunberg.
“Business decision”
In the company’s message, Heimburg emphasizes that it is a “commercial decision” that is the basis for scrapping the project now.
– The liquidation of the ROCC project is a business decision that is made based on the profitability and technical feasibility of the project. The decision also makes the 2016 app irrelevant, Heimburg says.
The company notes that the economic downturn and lower demand for fuel are one of the reasons it is now scrapping plans. At the same time, the Swedish authorities have expressed their willingness to support the domestic production of renewable fuels, which has improved the investment climate, the company writes.
– The focus on renewable fuels is a cornerstone of Preem’s long-term business strategy. In a situation where strict priorities must be set, it is crucial to Preem’s financial stability and competitiveness to allocate resources to projects that are most clearly in line with the overall strategy and I look forward to leading this important and important change, says Heimburg.
