Preem secures €240m to expand biofuel production at Lysekil site

Swedish energy firm Preem announced that it has secured a loan agreement of approximately €240m($260.5m) to finance the expansion of its renewable fuel production capacity at the Lysekil refinery.

This loan is part of Sweden’s green credit guarantee program offered by the National Debt Office and represents the second credit guarantee issued to Preem for its green initiatives. The loan, provided by the Swedish Export Credit Corporation and Crédit Agricole Corporate & Investment Bank, will cover 80% of the total investment, which is estimated at $504.5m.

Preem plans to use the funds towards reconstruction of the ICR facility at the Lysekil refinery, currently responsible for diesel production. The funding will help expand the site’s renewable production capacity from 530,000 cubic meters in 2023 to 1.2m cubic meters.

The reconstruction is set to begin this year and is expected to be completed by 2027.

Upon completion, the facility will be dedicated to the production of renewable diesel (HVO100) and sustainable aviation fuel (SAF).