Preem and Vattenfall in strategic partnership to enable large-scale, fossil-free hydrogen for biofuel production

While direct electrification of road transport continues to expand, fossil-free electricity also has significant potential to reduce emissions in liquid fuel production – a vital part of the broader energy transition.

Since 2017, Preem and Vattenfall have maintained a strategic collaboration focused on reducing emissions at Preem's Lysekil refinery by using fossil-free hydrogen produced by electrolysis using Vattenfall's fossil-free electricity. 

‘Biofuel production is central to Preem's long term strategy. As we rebuild and expand our Lysekil refinery we are reducing emissions at the source. Investments in fossil-free hydrogen are now central to scaling renewable fuel output and achieving our target of 5 million cubic metres by 2030, while supporting our ambitions to reach climate neutrality along the full value chain by 2035´, says Peter Abrahamsson, Executive Vice President and Head of Sustainable Development at Preem.

A feasibility study completed in mid-2021 confirmed that building a 200–500 MW electrolyser in Lysekil would be technically feasible and could reduce emissions by at least 80% compared to conventional hydrogen production.

Preem's 2030 target of 5 million cubic metres of renewable biofuels could reduce transport emissions by up to 12.5 million tonnes of CO₂, which is roughly 20% of Sweden's annual emissions. Achieving this requires a stable and large-scale hydrogen supply.

As part of its sustainability roadmap, Preem aims to reduce emissions across its entire value chain by 90% by 2035, with fossil-free hydrogen playing a key role in replacing fossil feedstocks in fuel production.

Preem and Vattenfall are now jointly assessing how to scale up the production of fossil-free hydrogen, including infrastructure development, permitting, and system integration, in order to enable the production of the next generation of fossil-free fuels.