Preem enters into partnership with RenFuel regarding the establishment of the world's first plant for lignin extraction
Preem has invested in Lignolproduktion AB, a joint venture company to be held by Preem and RenFuel, and enters into a partnership with RenFuel regarding the establishment of an extraction plant for the production of Lignol, which is produced from lignin, extracted from the Swedish forests.
Lignin can be refined into renewable fuels and used in all sorts of vehicles and will contribute to the phasing out of fossil fuels. Preem will be the first fuel company in Sweden to use lignin as raw material in fuel production.
The parties will, through the joint venture, produce a lignin oil, Lignol, which is a vital factor in achieving Sweden's goal of reducing fossil emissions by 70 percent in the transport sector by 2030. The lignin plant is expected to be commissioned in 2021. The Lignol will be processed in Preem's refineries and turned into biofuel.
Preem is the largest fuel company in Sweden and their two refineries are considered to be the most modern and environmentally-friendly in Europe. Preem refines and sell gasoline, diesel, heating oil and renewable fuels to companies and consumers in Sweden and abroad and employs more than 1,400 employees.
Preem was advised by Mannheimer Swartling in the transaction.