Finnish energy company St1 has selected the Swedish design and consulting company ÅF Pöyry to provide engineering services for the SEK1.5bn ($156.1m) Hydrogenated Vegetable Oils (HVO) manufacturing unit in Gothenburg, Sweden.

With the HVO manufacturing unit, the company aims to start the production of renewable diesel at the St1 Refinery in Gothenburg, Sweden.

Under the contract, ÅF Pöyry will be responsible for all the engineering, procurement and scheduling services of the project.

Expected to be operational in the beginning of 2022, the new plant will produce 200,000 tonnes of renewable fuel annually in the form of HVO, which is a renewable transportation fuel that can be blended into diesel or can be replaced with diesel.

St1 Refinery managing director Bo-Erik Svensson said: “The objective of our renewable fuels strategy is to meet the ambitious 2030 climate targets in our home markets of Finland, Sweden and Norway.

“A key area for us is significantly reducing the CO2 emissions of transportation fuels from own production.

“We have chosen ÅF Pöyry as an engineering partner to be able to carry out the project according to the desired standard and on time.”

Details of St1’s renewable fuel project

The project, which is said to be the largest single investment in St1’s history, involves construction of new units, revamp of existing units and new storage facilities.

It is part of St1’s efforts to become a major producer and seller of CO₂-aware energy. The St1 Refinery is expected a key role in fulfilling the company’s long-term advanced renewable fuels strategy.

ÅF Pöyry business unit manager process industries Jörgen Katz said: “Our target is to be a part of our customers’ success by creating sustainable solutions for the future.

“We look forward to cooperating with St1 in this project and making future for future generations together.”

In 2018, St1 partnered with Swedish forest products company SCA to produce renewable fuels from tall oil.