Worley awarded FEED contract for Preem’s Swedish SAF site

Engineering consulting firm Worley said it has been awarded the front-end engineering design (FEED) contract by Swedish refiner Preem for its planned conversion of the ICR plant at the Lysekil refinery.

“This award marks a significant stepping-stone for our operations in Sweden and the Nordics,” said Jan Narvestad, SVP, Worley Nordics. “The scale and ambition of this project highlight how Worley can actively contribute to driving sustainable change in close partnership with our customers.”

The FEED is scheduled began last month. The contract includes a roll over into the engineering, procurement and construction Management (EPCm) phase, anticipated to start in early 2026, pending Preem’s final investment decision.

The project will position Preem as the leading SAF producer in the Northern Europe.

The scope of work includes the complete conversion of the existing ICR unit – a refinery processing unit traditionally used to produce lighter, high-value products from hydrocarbons.

At Lysekil, the unit will be repurposed to produce renewable fuels based on vegetable and animal oils/fat, marking a significant step away from fossil-based production.

Earlier in November of 2023, Preem announced plans to invest additional SEK5.5bn (US$527.6m) to phase out fossil production from its Lysekil oil refinery in favour of renewable fuels for road and air transport.

The reconstruction work was scheduled to begin in 2024 and initially planned to be completed in 2027.