Vattenfall, Preem continue its study of clean hydrogen for biofuels

Vattenfall (a leading European energy company) and Preem (a leading fuel company in Sweden) have continued their work of assessing the potential of the first 50 MW electrolysis plant at Preem’s Lysekil refinery, Sweden.

The partners aim to move to the next stage during the spring of 2022. The initial study shows the excellent conditions for developing an electrolysis plant for producing hydrogen gas for biofuel in Lysekil. The potential of a first 50 MW plant is now being investigated.

In January, both partners started a strategic analysis of the role of fossil-free hydrogen from electrolysis by using fossil-free electricity, which Preem could use to produce biofuels on a large scale.

Preem aims to produce around 5 million cubic metres of biofuels by 2030, cutting transport emissions by up to 12.5 million tonnes of CO2, equivalent to 20% of Sweden’s total emissions.

The size of the first plant relies on scaling up biofuel production and obtaining greater output from the electricity grid, which will impact the schedule and costs. The number of factors determines when the new plant can be in place, such as how long the environmental assessment process will take.

Peter Abrahamsson, Head of Sustainable Development at Preem, said, “Preem is in the middle of an ambitious transition journey. Fossil-free hydrogen is an interesting technology that lends potential to increased, sustainable production of biofuels.”

Andreas Regnell, Vattenfall’s Head of Strategy, said, “It is very promising that fossil-free electricity has the potential to replace fossil raw materials and thereby reduce emissions from Preem’s hydrogen production, as biofuel production increases.”