Rottneros, Preem & RenFuel Building Plans for Lignin-based Biofuel Manufacturing Line

Preem and RenFuel agreed to work together this summer (June. 2018) and are cooperatively assessing, in collaboration with Rottneros, the construction of the world’s first lignin plant for biofuels, at the pulp mill in Vallvik, Söderhamn, Sweden. The plant is expected to produce an annual volume of 25,000-30,000 metric tons of lignin, and will be completed in 2021.  

The collaboration between the companies means that Preem will be the first fuel manufacturer in Sweden to use lignin in its production. Via the company Lignolproduktion AB, which is jointly owned by Preem and RenFuel, the aim is to reach a total production capacity of 300,000-500,000 metric tpy of lignin, based on the assumption that more plants similar to that in Vallvik are established in the future.  

"Lignin can be refined to create both renewable diesel and renewable petrol, and used in all vehicles. Lignin, like tall oil, will help us phase out fossil fuels to an even greater extent. It is a valuable raw material in our renewable fuel efforts, and is based on by-products from the Swedish forestry industry. It is also available in large volumes," said Petter Holland, managing director of Preem. 

"RenFuel’s lignin oil, Lignol, has considerable climate benefits and is a key factor in achieving Sweden’s goal of the transport sector reducing its fossil emissions by 70% between 2010 and 2030. Lignol makes today’s petrol and diesel cars clean vehicles. All current vehicles can run on this type of fuel," said Sven Löchen, managing director of RenFuel, who also considers there to be major export opportunities for this innovation, to countries that, like Sweden, have good access to well-established forestry production. 

Deliveries of samples of lignin from Rottneros’s pulp mill in Vallvik are already being made to Renfuel’s pilot facility, which was established for the production of Lignol with the assistance of the Swedish Energy Agency. The Lignol oil is then taken to Preem’s refineries, where the raw material is processed to make biofuels. 

"Rottneros is keen to contribute to strengthening Sweden's bioeconomy, in which the pulp industry is already a key element. In addition to contributing to the transport sector’s shift to become fossil free, the extraction of lignin also gives us the opportunity to increase our pulp production. This ensures that all parties benefit from the collaboration," said Ragnar Lundberg, VP of Technology at Rottneros. 

In 2017, approximately 9 million cubic meters of fuel were sold in Sweden, of which about 1.9 million cubic meters were classified as biofuel, according to the Swedish Petroleum and Biofuels Institute. About 15 percent of the biofuel was produced in Sweden, with the rest being imported from other countries.