Preem and Vattenfall have concluded an agreement to investigate the potential of using climate-smart hydrogen gas in the large scale production of biofuel for the Swedish market. The raw materials for this process are forestry by-products and hydrogen gas. The aim is to boost Preem’s production of biodiesel and other fossil-free biofuels to 3 million cubic metres annually by 2030.
Vattenfall, which strives to establish climate-smart solutions, can provide climate-smart hydrogen gas for the fuel production. The hydrogen gas will be produced by electrolysis, i.e. by passing an electric current through water to separate the molecules into hydrogen and oxygen gases.
"This is a significant step for us and I am very positive about the potential of this collaboration. "I see both business opportunities and climate benefits, where Vattenfall can contribute with climate-smart and competitive hydrogen gas," says Magnus Hall, President and CEO at Vattenfall.
By-products from the wood pulp industry
Preem, the largest fuel company in Sweden, already produces biofuel made from tall oil, a by-product of the forestry industry. It intends in the future to also produce renewable fuel from sawdust and forestry residues from timber felling and lignin from the wood pulp industry.
"We need to use many different types of raw materials and produce several different types of fuels to replace fossil fuels with renewables. Many different solutions are also needed. Preem's contribution is to make fuels that are as green and efficient as possible. The collaboration is also a step in our vision to be to the fore in the transition towards a sustainable society," says Petter Holland, CEO and President at Preem.
If Preem achieves its aim of producing three million cubic metres of renewable fuel annually by 2030, that would correspond to a large part of the government’s climate target for the Swedish transport sector. Hydrogen gas is a decisive part of the process to transform renewable raw materials into biofuel. Preem and Vattenfall will now set up a work group and pilot study which are financed by both parties.
Read more about how Vattenfall can help industry to cut its carbon dioxide emissions:
Reuducing industrial emissions