The company will send an application for a new environmental permit to the country's Land and Environmental Court, which, if granted, will make it possible to add a Green Feed Unit to the plant.
The upgrade will make it possible to produce around 1.0m m3/year of renewable diesel and aviation fuel. According to the company, this will cover approx. 25% of Sweden's need for renewable fuels in 2030. Preem's long-term goal is to supply at least 3.0m m3 of renewable fuels by that year.
The company will also seek permission to install a so-called electrolytic tube that would produce hydrogen with the use of electricity. Furthermore, Preem will seek to extend its source base, so that different types of raw materials could be used at its refinery in Gothenburg.
Apart from the permit application, Preem will undergo consultations both with the public authorities as well as residents that might be affected by the refinery's extension.
The new plant is expected to be completed no earlier than in 2023.
"Preem wishes to continue the transition to a sustainable society and increase production of renewable fuels in Sweden. We have both the technology and the ability to handle the transition to more sustainable fuels," Petter Holland, CEO, Preem, commented on the plans.