Preem makes major investment in green diesel at the Port of Gothenburg

Published 03/03/2014

Preem has decided to invest approximately 33,6 million euro to redevelop its refinery at the Port of Gothenburg. The investment will result in a doubling of production of diesel with renewable content – a fuel that is expected to replace fossil-based motor fuels more and more.

Since 2010, Preem has produced diesel based on tall oil, a residual product from the forestry industry. The tall oil is shipped from Piteå to the Port of Gothenburg, where it is processed together with fossil-based diesel at the Preem refinery, giving it the same properties as regular diesel.

The end-product has a one-third renewable content and is known as Evolution Diesel. Apart from tall oil, other vegetable or animal-derived input materials can be used in the production process, including rapeseed oil.

Preem is set to invest 33,6 million euro at its plant in Gothenburg to increase production of green diesel.

"We take a very positive view of the investment being made by Preem in Gothenburg and we support wholeheartedly the development of more renewable products that is currently taking place at the Energy Port," says Jill Söderwall, Commercial Director at Gothenburg Energy Port.

In general terms, the present annual volume of around 400,000 tonnes of tall oil diesel is expected to double. Expansion of the Preem refinery is scheduled for completion in autumn 2015.

"Our investment is completely in keeping with the times. Sweden needs a much higher proportion of green fuel if it is to meet the government's environmental targets. Diesel consumption has increased substantially in recent years and we feel that our product has significant market potential," says Petter Holland, President of Preem.  

At present, tall oil diesel is distributed by sea to other parts of the country and by road tanker to western Sweden. In time, Preem can see the possibility of Swedish-produced biofuels being exported.

For further information, contact

Thomas Ögren, Press Officer, Preem, phone +46 (0)70-450 10 01.  
Cecilia Carlsson, Head of Corporate Communications, Port of Gothenburg, phone +46 (0)31-368 75 45


Fact file: Energy Port in Gothenburg
The Energy Port in Gothenburg is the largest energy port in the Nordic region. Several refineries and storage companies carry on operations at the Port.

Each year, 2,500 tankers call at the Port and half of all crude oil that comes into Sweden arrives via the Port of Gothenburg. In total, more than 20 million tonnes of oil and other energy products are handled.

It is also the location of the largest depot operation in Sweden, supplying the whole of western Sweden with petrol and diesel and other energy products. In total, 50 per cent of all refined products remain in Sweden whilst the remainder is exported to the world market.

Last changed 04/09/2014