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The expansion of the Preem refinery at Lysekil has faced strong protests and became national policy during the year. Since the decision on an expansion is considered to affect the possibility of achieving Sweden’s national climate goals, it was up to the government to make a decision on the expansion.
News came in Monday that Preem is canceling expansion plans and discontinuing the so-called ROCC project.
– This decision made by the board is made entirely on a commercial basis. It’s about the profitability of the project but also its technical feasibility, Heimburg says, explaining that the covid 19 pandemic was also important.
The ROCC project aimed to turn heavy oil into a greener fuel, including in shipping. At the same time, carbon dioxide emissions at the refinery would double. The plans have been met with strong opposition and there has been a long series of protests.
The Green Party, both in Lysekil and nationally, has opposed the expansion, and there has been speculation over the fall whether the decision on the expansion in Lysekil could divide the government, as the Social Democrats, according to DN sources, they leaned in yes.
Heimburg, who was appointed chief executive officer earlier this year, denies that the company has come under pressure from the government.
– No, again, these are business reasons, but overall, at Preem we feel we have strong political support for our existing operations, but also for future development plans for our refineries, he says.
Do you think that the debate that has taken place and the protests that have taken place have hurt Preem?
– I think Preem received a lot of upset in the media. We must not forget that our strategy and overall vision is to phase out fossil production. And it is clear that when we are internally aware of that strategy, it can be a bit uncomfortable.
In practice, the decision means that Preem will withdraw its environmental application and finalize the project. The company intends to return with a new operating proposal in the fall.
It is clear that Preem will continue planning the expanded operations in Gothenburg. At its Hisingen facilities, Sweden’s largest refinery is planned for the production of renewable diesel and renewable aviation fuel. The environmental permitting process for this facility has already begun and is pending at the Land and Environment Court.
– We consider that the conditions to approve this project are very good, says Heimburg.
Therefore, the decision on Preemraff in Lysekil runs the risk of breaking the government.
Read more: So the Preemraff decision risks cracking the government
Isadora Wronski, Acting Director of Sweden At Greenpeace, he sees the decision as confirmation that climate actions in protest against the expansion have paid off.
– The pressure has been enormous. We are not surprised, there is no possibility of expanding a fossil fuel business in this way, he tells DN.
Several environmental organizations, including Greenpeace, Extinction Rebellion and the Swedish Society for Conservation of Nature, have become involved in the issue of Preem’s expansion. Isadora Wronski doesn’t think the air will get out of hand after Preem’s decision.
– Our focus is the great climate change, system change, which is required to create a sustainable future. Here we have to look at things like our economic system, how it is structured. These are complex topics that need to be broken down.
The text is updated.
