GAVLE, Sweden (News release) -- Preem and wood industry company Setra are investigating the possibility of building a joint production facility for the manufacture of pyrolysis oil, a renewable raw material for biofuel. The facility is being planned at Setra Kastet sawmill in Gävle, Sweden, and is expected to be completed in 2021.
The planned production facility will turn sawdust into pyrolysis oil, a renewable raw material for biofuel. Construction is expected to begin in 2019, and the facility is estimated to provide around 25,000 tonnes of pyrolysis oil per year that, via Preem's refinery in Lysekil, will be refined into biofuel. An application for an environmental permit has been made.
"Sawdust is a by-product in our manufacture of wood products, and the possibility of producing pyrolysis oil, which can then be used in biofuel, is completely in line with Setra's strategy to increase the value and climate benefit of our products. We've been running the pyrolysis oil manufacturing project with the aim of finding a partner for commercial applications. The fact that Preem now wishes to invest in this facility with us is extremely positive," says Hannele Arvonen, CEO of Setra Group.
The partnership with Setra is part of Preem's ambition to manufacture 3,000,000 cubic metres of renewable fuel at refineries in Lysekil and Gothenburg by 2030.
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