Vattenfall and Preem have formed a collaboration to investigate the potential of using climate-smart hydrogen gas in large scale biofuel production for the Swedish market.
Preem's objective is to produce three million cubic metres of renewable fuel yearly by 2030, which would account for the bulk of the reduction in carbon dioxide emissions in the Swedish transport sector. Green raw materials are required to achieve this.
Vattenfall, which strives to power climate smarter living, can provide climate-smart hydrogen gas for the fuel production. Preem and Vattenfall will set up a work group and pilot study which are financed by both parties.
Preem and Vattenfall will also review the potential of producing green hydrogen gas by utilising electricity from hydro and wind power, which give emissions that have very little impact on the climate.
Preem CEO and president Petter Holland said: "We need to use many different types of raw materials and produce several different types of fuels to replace fossil fuels with renewables. Many different solutions are also needed.
"Preem's contribution is to make fuels that are as green and efficient as possible. The collaboration is also a step in our vision to be to the fore in the transition towards a sustainable society."
Vattenfall president and CEO Magnus Hall said: "This is a significant step for us and I am very positive about the potential of this collaboration. I see both business opportunities and climate benefits, where Vattenfall can contribute with climate-smart and competitive hydrogen gas."
Today Preem already produces biofuel or so-called biodiesel (non-fossil diesel) made from tall oil, a by-product of the forestry industry, but it also intends in the future to produce renewable fuel from sawdust and forestry residues from timber felling and lignin from the wood pulp industry.
Hydrogen gas is a decisive part of the process to transform renewable raw materials into biofuel. Climate-smart hydrogen gas and different by-products from the wood pulp industry could multiply the production volumes compared to those of today.