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Preem will withdraw its application to expand Preemraff’s Lysekil oil refinery, which Sveriges Radios Ekot was the first to report.
The so-called ROCC project has aimed to reduce heavy oil production in favor of diesel and gasoline. Preem calls it “technically challenging and requires a lot of resources” and believes that the crisis in the crown has made the project unprofitable.
– The decommissioning of the ROCC project is a business decision based on a balance between profitability and the technical feasibility of the project. The decision to terminate the project also makes the 2016 permit application obsolete, says Magnus Heimburg, Preem’s newly appointed chief executive, in a press release.
Preem says the company will prioritize the refinery in Gothenburg. There, they will build a plant for the production of renewable diesel and renewable jet fuel, which Preem says will be the largest in Sweden.
A new application will also be submitted during the fall to allow large-scale production of renewable fuels at the Lysekil refinery.
“The refinery at Lysekil is crucial to Preem’s competitiveness in the international market and an important enabler for Preem’s operations going forward. Preemraff Lysekil’s renewable conversion is a top priority for Preem, “writes Magnus Heimburg in a text message to Bohusläningen.
Denies that politics is behind the decision
“It is important to note that this does not affect Preem’s long-term goals at all. Our goal is to become climate neutral by 2045 and produce at least 5 million cubic meters of renewable fuel by 2030, “writes Magnus Heimburg. He also states that Preem does not see this as a failure.
– No. We think we have always had a very good dialogue in the board about this project and now we have made the decision on a commercial basis, based on the outside world in which Preem operates today, Magnus Heimburg tells TT.
Green Youth Tweets applauding that it is due to the environmental movement and the Green Party that the request is withdrawn. Magnus Heimburg says, however, that there are no political signals or decisions that have affected the company.
– At Preem we feel that we have a very strong and broad political support for our existing operations and around the future development plans that we have for the refineries, he tells TT.
The environmental movement is encouraging
As we have described in several articles, the environmental movement has fought against the expansion of Preemraff. In addition, there was the risk of a government crisis because the Green Party was strongly against construction. Now local representatives express great relief.
– It’s very gratifying, I just got out of a meeting here and then the phone almost exploded, says Emma Nohrén (MP), first vice president of the Lysekil municipal board.
She continues:
– This is what we have wanted people not to lock themselves in fossil solutions. They say themselves that they will come up with a new application and then we can hope that it will be future solutions.
Did you have any indication that this would happen?
– Not at all, it’s a great and pleasant surprise.
“It is crucial for Preem’s future at Lysekil”
Jan-Olof Johansson (S), chairman of the municipal board, has not had any contact with Preem after the company announced that it was withdrawing its application. At the same time that Jan-Olof Johansson says it is “surprising”, he knows the conditions of Preem.
– I have understood from previous contacts with Preem what the market looks like with corona effects. It is a difficult situation to sell fuel today, and it probably will be for all refineries in Europe. Of course, you can understand that it is difficult to make a multi-million dollar investment in such a situation, says Jan-Olof Johansson.
– Accelerating the transition to renewable energy is the driving force behind me to decide on eligibility. He says Preem is still what he claims to do. It is crucial for the future of Lysekil, says Jan-Olof Johansson.
Are you worried that Lysekil is less important to Preem?
– No, not if the transition to renewable production takes place, I see it very important. It may be crucial for Preem’s future at Lysekil, says Jan-Olof Johansson.
Chamber of Commerce happy with jobs
Member of Parliament Fredrik Christensson (C) from Lysekil expressed surprise at the decision.
– At the same time, you must have respect for companies that make decisions based on their financial situation and the external situation. But I hope they will make other investments in the transition to renewable fuels and that Lysekil, with all their knowledge, can be a part of it.
The West Swedish Chamber of Commerce has closely followed the process in Lysekil. CEO Johan Trouvé is happy with the investments that are still being made there and in Gothenburg.
– Together, they are almost as big as the giant man they were working on in Lysekil. In the long term, I see that jobs are being secured and that people are switching to renewable products much faster. It is exciting for the future that we strengthen the petroleum chemical group that exists in western Sweden.
Are you convinced that the project now stopped was respectful with the environment?
– Yes, it is the information that I received from people who are knowledgeable about the area in which I trust. Because carbon dioxide is a global dilemma that knows no limits. Emissions had certainly increased in Sweden, but they decreased globally, says Johan Trouvé.
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