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In late September, Preem withdrew the controversial request to expand the Lysekil refinery. Now they change their application and invest in renewable fuels. It will strengthen the company’s competitiveness in the long term, according to CEO Magnus Heimburg.
– We already do that today at our Gothenburg refinery. But now we want to start the process so we can do it in Lysekil, says Magnus Heimburg.
The idea is to rebuild an existing plant that will be able to handle up to 40 percent renewable raw materials to start with, higher levels in the long term.
– At the Lysekil refinery, which today produces diesel, we want to be able to feed the plant with renewable raw materials instead of fossil oil and then come out with a renewable diesel.
Rapeseed and pine
At the Gothenburg plant, pine oil and rapeseed oil are currently used mainly for renewable production; this is also the idea at Lysekil.
Recently, Preem has made many important decisions. From wanting to expand the oil refinery to scrapping that plan altogether and then transitioning to renewables.
Here’s what Heimburg has to say about the decision to drop the original idea:
– In the end, when we got deep into the project, it turned out that the profitability no longer existed. It had also gotten a lot more expensive than when we started. Then we decided to stop it and prioritize projects that allow us to produce renewable diesel and gasoline. For that we want to set a higher rate, that change, he says.
Without cuts
Preem is a large employer in Lysekil and its surrounding municipalities. Investing is a way for Preem to be competitive in the long term.
Magnus Heimburg does not see that any existing job is in jeopardy.
– We hope we can use the same staff who run this facility today, he says.
The facility is scheduled to be operational in 2024.
Facts: The Refinery Tours
December 14, 2016: Preem applies for a new environmental permit at the Land and Environment Court of the Vänersborg District Court.
November 9, 2018 – The court approves the request. However, the decision is being appealed by, among others, the Swedish Society for Conservation of Nature.
June 17, 2019: The Supreme Court of Lands and Environment issues authorization to appeal. On the same day, the Swedish Nature Conservation Society sends a so-called notification to the government, which, according to the organization, should take over the examination of the permit.
June 27, 2019: The Swedish Environmental Protection Agency also sends a notification to the government, with reference to the fact that the expansion according to the agency is framed in the letters of the Environmental Code on activities that “can be assumed to be significant or of intermediate nature “.
August 23, 2019: The government decides to make the final decision on the Preem environmental permit.
October 30, 2019: Preem completes his permit application. Among other things, the planned expansion is reduced by 20 percent, which along with other measures also reduces the forecast of carbon dioxide emissions.
March 10-12, 2020: The Supreme Court of Lands and Environment will hold its hearing in a Lysekil courtroom.
June 15, 2020: The Court’s opinion is made public.
September 16, 2020: Lysekil City Council says yes to Preem’s controversial planned expansion of the oil refinery.
September 28, 2020: Preem withdraws its application to expand the Lysekil oil refinery.
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