Sweden refiner switches to tall oil-based biodiesel

07 July 2008 10:44  [Source: ICIS news]

STOCKHOLM (ICIS news)--Swedish oil company Preem plans to invest kronor (SKr) 259 million (€28m/$43m) in its Gothenburg refinery to replace crude oil with tall oil, a by-product from the production of kraft pulp, the company said on Monday.

The tall oil will be fed into the refinery at the hydrogenation unit to produce second-generation biodiesel with an initial capacity of 140,000 tonnes/year. Production will start in 2009.

Other vegetable oils can be used as raw materials as well as animal fat.

Preem also said that the company is looking into carbon dioxide (CO2) capture and storage (CCS) and also into using biomass as a hydrogen source for its refineries.

The move follows Preem's investment in Sunpine, a tall oil refiner to be built in northern Sweden and producer of an intermediate for biodiesel production.

($1 = SKr5.98/€1 = SKr9.40) 

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By: Sverker Nyman
44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)


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