(Stockholm / Sweden) – Sweden's largest oil company Preem Petroleum AB and state energy supplier Vattenfall AB are entering the next phase of collaboration on hydrogen. After the companies announced their cooperation in 2019, the companies now want to conduct a feasibility study to examine the extent to which a value chain for offshore wind energy and hydrogen can be set up.
“Will for transformation”
Sweden wants to reduce carbon dioxide emissions from the transport sector by 2030 percent by 70 compared to 2010. According to Preem, there is “a highly specialized refining and petrochemical industry as well as great potential for offshore wind energy” on the Swedish west coast; also “a strong will for transformation throughout the region”. Vattenfall sees “great potential” for decarbonizing industries such as refineries, petrochemicals, steel and fertilizer through the use of fossil-free electricity and hydrogen.
According to Preem, the Swedish transmission system operator Svenska Kraftnät recently announced plans to expand its network to areas such as the Swedish west coast within the Swedish maritime area. This creates an “important framework” to advance decarbonization.
Key role in the transition to a fossil-free industry
The development of a west coast concept with offshore wind power and hydrogen production could “play a key role in the transition to a fossil-free industry,” says Vattenfall Managing Director Anna Borg. The growing Swedish offshore wind portfolio, currently more than 20 terawatt hours, offers “ample opportunities”.
“The supply of fossil-free hydrogen is still scarce,” says Preem managing director Magnus Heimburg. New infrastructure could “accelerate our transition to a climate-neutral value chain and enable the production of five million cubic meters of renewable fuels and e-fuels by 2035 at the latest.”
Expand hydrogen supply
According to a previous statement, this could lead to a reduction in transport emissions of 12,5 million tonnes of carbon dioxide, equivalent to around 20 percent of Sweden's total emissions. The transition requires a large-scale supply of hydrogen, and the expansion of one or more electrolyzers could play an important role in this.
Preem's two refineries have a capacity of over 18 million cubic meters. The company has a nationwide network of 520 gas stations. Preem AB employs around 1.500 people, including 1.100 in the refineries. In 2021, Preem's sales were 89,6 billion crowns (8,3 billion euros).
Photos
Preem refinery in Lysekil on the west coast of Sweden. © Preem AB
