Swedish energy giant Preem commits $279 million to renewable fuel transition in 2024

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• Preem committed $279 million in 2024 to renewable fuel projects, reinforcing its push to cut emissions by 90% by 2035.
• The company reduced fossil emissions by 700,000 tons in 2024, bringing its total cut since 2018 to 12%.
• Despite a decline in revenue and profits, Preem maintains strong liquidity at $1.6 billion, ensuring continued investment in its renewable energy transition.

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Preem, Sweden’s largest fuel company, has strengthened its push toward sustainable energy with a $279.37 million investment in renewable fuel infrastructure and climate-reducing initiatives in 2024. The move underscores the company’s commitment to cutting emissions by at least 90 percent across its value chain by 2035.

A pivotal moment in Preem’s transition came with a green credit guarantee from Sweden’s National Debt Office, enabling large-scale reconstruction of its IsoCracker (ICR) unit in Lysekil.

The project, which represents a total investment of approximately SEK 5.5 billion($548.92 million), will boost the company’s production of sustainable aviation fuel (SAF) and renewable diesel—critical components in the global effort to decarbonize transportation.

Significant strides in emissions reduction

Preem’s latest update highlights significant progress in its sustainability drive. In 2024 alone, the company cut fossil emissions by 700,000 tons.

Since 2018, the company has reduced emissions from 60 million to 52.5 million tons—a 12 percent drop. The bulk (89 percent) of emissions came from vehicle fuel use, with 61.5 percent occurring in European export markets.

“We are proud of our progress in transforming operations and reducing climate impact,” said CEO Magnus Heimburg. “Phasing out fossil fuels requires sustained investment in refinery conversions and renewable fuel production.”

“The market is shifting, but demand for our products remains strong,” Heimburg added. “Our financial strength ensures we stay on course toward a sustainable future.”

Accelerating renewable fuel production

Preem escalated its green transition in 2024, investing SEK 2.8 billion ($279.37 million) in renewable fuel infrastructure and climate initiatives.

A key milestone was completing the Synsat unit upgrade in Lysekil, set to boost renewable diesel output by one million cubic meters annually, with full operations expected in 2025.

Other significant strides include:

• Installing 55 new EV charging points across ten stations.
  
• Switching all domestic land transport to HVO100 renewable diesel, slashing delivery-related emissions by 90 percent (from 4,000 to 400 tons of CO₂).
  
• Upgrading Helsingborg and Norrköping depots to enhance renewable raw material handling.

Financial resilience amid market normalization

Preem reported SEK 131 billion($13.07 billion) in revenue for 2024, down from SEK 138 billion($13.77 billion) in 2023, while operating profit dropped to SEK 2.2 billion($219.57 million) from SEK 7.9 billion($788.45 million), reflecting a market shift following two years of exceptional industry performance.

Despite the earnings decline, Preem remains financially strong, with SEK 16 billion($1.6 billion) in liquidity, ensuring continued investment in its renewable energy transition.

With government support, strategic investments, and a clear path to net-zero, Preem is set to reinforce its leadership in Europe’s renewable energy sector.