Sweden's Preem tests renewable gasoline production

: Biofuels, Oil products
21/06/22

Swedish refiner Preem has carried out first tests to produce renewable gasoline from sawdust at its 220,000 b/d Lysekil refinery in southwest Sweden.

Preem will process an initial 300t of pyrolysis oil and will use a further 50,000t over two years from this autumn, sourced from Swedish bio-oil producer Pyrocell that Preem jointly owns with Swedish timber business Setra. Pyrocell produces the pyrolysis oil from sawdust at its plant in Gavle, Sweden, that is adjacent to Setra's Kastet sawmill.

"Residual products from our Swedish forests have a unique potential to make Sweden self-sufficient in an increasing share of liquid renewable fuels in the long run," Preem's head of sustainable development Peter Abrahamsson said.

Biomass waste from forestry and forest industries — such as sawdust — falls into the advanced feedstock category under Annex IX part A, in the EU's recast Renewable Energy Directive (RED) II. Demand is likely to grow for advanced biofuels, produced from feedstocks on this list, as the mandate increases to 3.5pc by 2030. RED II will come into force at the end of June.

Preem started producing renewable diesel at Lysekil last November, combining 5pc rapeseed oil (RSO) with crude to produce Swedish environmental class 1 diesel. Lysekil will process up to 40pc renewable fuels when all conversion works are complete.

Preem can process up to 85pc renewable fuels at its 106,000 b/d Gothenburg refinery, following the upgrade of a hydrotreater unit. The firm's long-term goal is to produce approximately 5mn m³ of renewable fuels by 2030, which it estimates will reduce CO2 emissions by 12mn t.

Other European refiners are making significant moves to produce more renewable fuels. TotalEnergies, formerly Total, stopped crude processing at its 93,000 b/d Grandpuits refinery near Paris in the fourth quarter of last year ahead of a full conversion to biofuel processing. And Italian integrated Eni's 84,000 b/d Livorno refinery is under consideration for a similar conversion.

Finnish refiner Neste in May began testing a renewable gasoline, which could act as a drop-in solution to replace fossil gasoline.

By Georgia Gratton and Benedict George

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

26/05/18

Iran says diplomacy, negotiations continue

Dubai, 18 May (Argus) — Iran's foreign ministry has said negotiations with Washington aimed at ending the war are continuing, even as US President Donald Trump issues increasingly incendiary rhetoric towards Tehran. Trump last week described Tehran's response to a US plan to end the war was "totally unacceptable" and a "piece of garbage" that he did not finish reading. He said the ceasefire, which has been in place since 8 April, was "on life support." At the weekend, Trump issued new threats against Tehran, saying "the clock is ticking" and that Iran had "better get moving, FAST, or there won't be anything left of them." On Monday, Iran's foreign ministry spokesman Esmail Baghaei dismissed Washington's framing of the negotiations. "After we presented our 14-point plan, the American side raised its concerns. In return, we also raised our concerns," he said. "And last week, despite the American side publicly announcing that the plan was rejected, we still received a set of amendments via our Pakistani mediators." Iran's latest response to the US was sent on Sunday 17 May, he said, and "the process continues through Pakistan." Iran's nuclear activities remain the foremost sticking point between the sides, with Trump repeatedly insisting Iran cannot be allowed to have a nuclear weapon. Iranian state media on Sunday published five conditions the US has set for Iran to secure a deal, including the shuttering of all but one nuclear facilities, and the transfer of Iran's stockpile of highly enriched uranium to the US. Baghaei today would not be drawn on the US proposals, but reiterated Iran's right to enrich uranium is protected as a signatory to the non-proliferation treaty (NPT), and is therefore up for neither negotiation nor compromise. Planning for Hormuz The unresolved situation means shipping is still disrupted through the strait of Hormuz. Trump has over the past two months repeatedly claimed agreements with Iran that he said should restore at least some traffic through the strait. But little has changed since the start of the war, prompting Washington to impose last month a blockade of its own on vessels travelling to and from Iranian ports. Argus reported in April that Iran's parliament was discussing a bill to formalise and govern Tehran's oversight and management of traffic through the strait. At that point, the bill had secured the approval from parliament's national security council, but had not been brought to parliament. Speaking at the weekend, Ebrahim Azizi, head of parliament's national security council, said this framework "to manage traffic in the strait" had been prepared, and would "be unveiled soon." "Under this framework, only commercial vessels and parties co-operating with Iran can benefit from it," Azizi said. The route will be closed to operators of Project Freedom, he said, referring a US operation to support vessels stranded in the Mideast Gulf to exit through the strait. Speaking on Monday, Baghaei said Iran is "in continuous contact with Oman and other relevant countries" as it develops this new mechanism. Iranian and Omani experts met on the matter last week, he said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Hormus belebt sich – Dieselzuflüsse bleiben schwach

26/05/15

Hormus belebt sich – Dieselzuflüsse bleiben schwach

Hamburg, 15 May (Argus) — Die Zahl der Schiffsbewegungen durch die Straße von Hormus hat in den vergangenen 24 Stunden zugenommen. Nach Angaben der halbamtlichen iranischen Nachrichtenagentur Fars haben Peking und Teheran eine Verständigung über die Passage durch die Wasserstraße erzielt. Ein China-gebundener VLCC ("Yuan Hua Hu") passierte die Straße am 14. Mai und durchquerte anschließend die US-Blockade am Eingang zum Golf von Oman. Ob es dabei zu einem Kontakt mit der US-Marine kam, ist unklar. Insgesamt stieg die Zahl der Transite laut Schiffsdaten am Donnerstag leicht auf mindestens neun Schiffe, nach sechs am Vortag. Darunter befand sich mit dem Containerfrachter "Ciccio" ein China-gebundenes Schiff in westlicher Richtung, während die meisten weiteren westwärts fahrenden Einheiten iranischen Bezug hatten. Die ostwärts gerichteten Transite umfassten sieben Schiffe, darunter mehrere iranisch verbundene Einheiten wie der VLGC "NV Sunshine", der MR-Tanker "Swift Falcon" sowie weitere Gas-, Stückgut- und Spezialschiffe. Auch der nicht-iranisch gebundene Short-Sea-Tanker "Trend" durchquerte die Meerenge ostwärts. Parallel dazu signalisierte Chinas Präsident Xi Jinping laut US-Angaben Interesse an US-Rohölimporten und teilte die Haltung Washingtons gegen eine iranische Kontrolle über die Straße von Hormus. In der chinesischen Darstellung des Treffens mit US-Präsident Donald Trump wurde dies jedoch nicht explizit erwähnt. Dieselzuflüsse brechen ein — Bestände sinken Die Entwicklungen in der Straße von Hormus wirken sich weiterhin deutlich auf die Produktmärkte aus. Nordwesteuropa erhielt im April lediglich 1,64 Mio. t Diesel und Gasöl auf dem Seeweg aus Drittregionen — der niedrigste Monatswert seit mindestens zehn Jahren. Die faktische Einschränkung der Passage seit Anfang März hat nicht nur direkte Lieferungen aus dem Nahen Osten reduziert, sondern auch die globale Verfügbarkeit verknappt, da andere Regionen verstärkt um alternative Mengen konkurrieren. Für Mai zeichnet sich ein ähnlich schwaches Importniveau ab. In den ersten zehn Tagen wurden lediglich 0,5 Mio. t entladen. Sowohl April als auch Mai dürften damit im Jahresvergleich um rund 40 % beziehungsweise etwa 1 Mio. t/Monat oder 30.000–35.000 t/Tag niedriger ausfallen. Die knappe Versorgung hat bereits zu spürbaren Bestandsabbauten geführt. In Deutschland lagen die privaten Dieseltankfüllstände Anfang Mai laut Argus MDX bei rund 50 % und damit etwa 5 Prozentpunkte unter dem unteren Rand der Fünfjahresspanne. Die unabhängigen Gasölbestände im Handelszentrum Amsterdam-Rotterdam-Antwerpen sanken laut Insights Global nach fünf aufeinanderfolgenden Wochenrückgängen Anfang Mai im Jahresvergleich um 12 %. Die Rückgänge erfolgen trotz vergleichsweise geringer Raffineriewartungen im Frühjahr. Bereits in der Wartungssaison bis April 2025 waren die EU-Dieselbestände um rund 1,6 Mio. t beziehungsweise etwa 4 % gesunken. Besonders deutlich zeigt sich der Einfluss der Hormus-Situation bei Lieferungen aus dem Mittleren Osten. Im März erhielt Nordwesteuropa noch 1,59 Mio. t aus Saudi-Arabien, Kuwait, den VAE und Katar. Im April fiel diese Menge auf nur noch 0,36 Mio. t, und in den ersten zehn Maitagen wurden lediglich 0,1 Mio. t importiert — ausschließlich aus saudi-arabischen Rotmeerhäfen. Zugleich bleiben auch Lieferungen aus Indien weitgehend aus. Hohe Preise in Asien, backwardierte Märkte in Europa und gestiegene Frachtraten haben westgehende Arbitragen geschlossen. Nach 0,25 Mio. t im März wurden im April und bislang im Mai keine indischen Dieselimporte verzeichnet. Eine Ladung von rund 140.000 t auf dem Suezmax-Tanker "Cap Grace" befand sich am 14. Mai vor Mosambik südwärts — sie könnte die erste Lieferung seit rund zwei Monaten nach Nordwesteuropa darstellen. Insgesamt bleiben die Zuflüsse nach Nordwesteuropa — inklusive innerregionaler Verkehre — auf Dekadentiefs. Die Anlandungen beliefen sich im April auf 3,55 Mio. t und in den ersten zehn Maitagen auf lediglich 1,17 Mio. t. Von Rhys van Dinther, Benedict George und Marc Hauschild Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2026. Argus Media group . Alle Rechte vorbehalten.

European refiners brace for a new rise in crude diffs

26/05/14

European refiners brace for a new rise in crude diffs

London, 14 May (Argus) — Physical crude differentials in Europe are poised for a rebound in the coming weeks, traders said, as the effects of recent price containment measures wear off. Prices for many grades relative to the North Sea Dated benchmark hit all-time highs in the first half of April, with acute shortages of crude caused by the effective closure of the strait of Hormuz. Many grades reached more than $20/bl premiums to Dated, eroding refinery economics. The situation changed from mid-April, as governments began to introduce price mitigation measures including drawing down inventories of products and using up crude from floating storage. Argus' calculations show returns for a northwest European refinery from running Europe's staple grade US WTI, Norway's medium sour Johan Sverdrup and Brazilian medium sweet Buzios, all flipped negative in the first half of April because of record differentials and expensive freight ( see graph ). The calculation uses the value of grades in terms of oil products that an average refinery can produce, or Refinery Gate Values (RGVs), and deducts the cost of crude and freight. Only some west African grades, like Nigerian medium sweet Forcados, remained profitable because of superior product yields. Refining profits in the Mediterranean region dipped, with running Libyan Es Sider becoming loss-making, and profits from running Caspian CPC Blend shrinking. Crude differentials then dropped to near pre-war levels in May, with two measures notably making a difference, traders said. China reduced imports by nearly 2mn b/d by cutting runs, using commercial stocks and even reselling some cargoes back to the spot market, and the US crude stock releases resulted in around 400,000 b/d of discounted crude from the country heading to Europe for arrival in May and June. Trader said these two factors have shielded the crude market from even higher prices and crashed prompt prices. Refinery profits have bounced back, and although they are $10-15/bl below March record highs, they are $15-20/bl above January averages for many grades. Now, any prompt excess has been depleted, and traders said June is going to get tight and prices will climb again, with some evidence noticeable in cargoes trading further ahead. Far out prices at premiums Europe's market can be roughly divided into two tiers in terms of the timing of crude trade — prompt, for loading/delivery 2-4 weeks ahead, and cargoes due 1-2 months ahead. Prices for the latter are already at substantial premiums to prompt supplies. Freight-adjusted UK Forties crude, which typically trades promptly, averaged an almost $9/bl premium to CPC Blend cif Augusta, which trades a bit further ahead, in the second half of April, signalling a shortage of prompt supply. But since 5 May, prompt Forties has been $1.20/bl below CPC Blend. Similarly, WTI for prompt delivery was largely at parity to supplies arriving more than one month ahead in mid-April, but is now at a $4/bl discount on average. Traders said crude differentials will be not as high as they were in April, but said pre-war differentials are unsustainable as long as Hormuz remains closed. The Dated-to-frontline contracts (DFL) for May and June, which reflect the strength of physical market relative to the futures in a given month, also suggest physical prices are likely to increase. The May DFL fell to $2-$3/bl in early May, but was above $5/bl on 13 May. The June DFL rose from $4/bl in early May to above $5/bl. For comparison, the front-month DFL was negative in February, when the European market looked oversupplied, and the second-month DFL was well below $1/bl in the same period. By Lina Bulyk Med refinery profits for some grades $/bl NWE refinery profits for some grades $/bl Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

War cuts northwest Europe diesel imports to decade-low

26/05/14

War cuts northwest Europe diesel imports to decade-low

London, 14 May (Argus) — Northwest Europe only received 1.64mn t of diesel and other gasoil by sea from other regions in April, the lowest monthly total in at least a decade, according to Vortexa tracking. The effective closure of the strait of Hormuz since the start of March has not only cut off direct shipments from the Mideast Gulf to northwest Europe, but created shortages in other regions that are now competing harder for other diesel supply that northwest Europe might have received. May is on track for a similar import volume, since only 500,000t was received in the first 10 days of the month. These volumes would put April and May each roughly 40pc down year-on-year, down by 1mn t/month, or by 30,000-35,000 t/day. Stock data is limited and lagged in Europe compared with the US, but it is clear that diesel stocks have been drawn down significantly over recent weeks. German private diesel tanks were only around 50pc filled in early May, five points below the floor of the previous five-year average, according to Argus MDX data. Independent gasoil stocks at Amsterdam-Rotterdam-Antwerp (ARA) were 12pc lower year-on-year in early May, according to consultancy Insights Global, after five consecutive weekly declines. This year's spring refinery maintenance schedule has been relatively light, but would be expected to call stocks into action even so. During the previous spring maintenance period in the three months to April 2025, EU diesel stocks were drawn down by 1.6mn t or around 4pc. As recently as March, northwest Europe received 1.59mn t of diesel and other gasoil from Saudi Arabia, Kuwait, the UAE and Qatar together. Then in April, as the impact of the closure of the strait of Hormuz began to tell, only 360,000t arrived from those origins. In the first 10 days of May, only 100,000t arrived, entirely from Saudi Arabia's Red Sea ports. The closure of the strait of Hormuz is not only limiting supplies from the Middle East. High prices in Asia, backwardated markets in Europe and soaring freight costs have stopped Indian supply coming west too: northwest Europe received 250,000t from India in March, but zero in April or May so far. Around 140,000t of Reliance diesel on the Suezmax tanker Cap Grace was off Mozambique on 14 May, heading south. It could become the first Reliance diesel to reach northwest Europe in around two months. Including shipments from other northwest European ports, diesel and gasoil receipts at northwest European ports are still at the lowest in a decade, at 3.55mn t in April and only 1.17mn t in the first 10 days of May. By Benedict George Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Singapore bunker sales fall to 14-month low in April

26/05/14

Singapore bunker sales fall to 14-month low in April

Singapore, 14 May (Argus) — Bunker sales at the key hub of Singapore fell to a 14-month low in April as the US-Iran conflict took its toll, according to preliminary data released by the Maritime and Port Authority of Singapore (MPA) on 14 May. But consumption improved on the year for B100 and LNG as competitive prices of these new fuels versus conventional bunker prices spurred interest. Total bunker consumption in Singapore nudged down by 1.2pc on the year to 4.35mn t in April and fell by 8.7pc on the month. The decline was in line with market expectations of demand destruction after the US-Iran war started, which put pressure on Singapore prices in April . Slower downstream trading in the bunker sector also surfaced despite Singapore remaining a preferred refuelling destination for most vessels. April vessel arrivals rose by 3pc on the year to 10,873. Low-sulphur fuel oil (LSFO) sales also fell to a 14-month low of 2.19mn t, down by 2pc on the year, as many buyers delayed non-urgent bunkering on elevated prices. Similarly, buyers had weak demand for low-sulphur marine gasoil (LSMGO), with April sales dropping by over 18pc on the year to around 256,000t, extending a downtrend since the start of the year. Sales for high-sulphur fuel oil (HSFO) fell to a 10-month low of 1.79mn t in April, but edged up by 5pc on the year. This was likely supported by stronger demand from scrubber-fitted vessels opting for lower-cost HSFO compared with very-low sulphur fuel oil (VLSFO), as well as longer routes around the Cape of Good Hope. B100, LNG sales rise Demand for alternative fuels remained subdued overall in April. Sales in Singapore fell by 23pc on the year and was down 17pc on the month to around 519,000t, with biodiesel accounting for the largest share at nearly 62pc. But buying interest for B100 strengthened given that the spread had narrowed against conventional fuel oil prices, and sales jumped to around 6,500t, compared with roughly 300t a year earlier. B100 prices were above $1,300/t delivered on board (dob) in April, although spot trading remained muted as many buyers preferred term contracts, market participants said. LNG demand also firmed in April, with bunker sales up by almost 1pc to over 42,000t in Singapore. LNG prices averaged $661.96/t dob Singapore on a VLSFO equivalent basis, while average April prices stood at $17.37/t dob on mnBtu basis. By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more

Sweden's Preem tests renewable gasoline production

Related news posts

Iran says diplomacy, negotiations continue

Iran says diplomacy, negotiations continue

Hormus belebt sich – Dieselzuflüsse bleiben schwach

Hormus belebt sich – Dieselzuflüsse bleiben schwach

European refiners brace for a new rise in crude diffs

European refiners brace for a new rise in crude diffs

War cuts northwest Europe diesel imports to decade-low

War cuts northwest Europe diesel imports to decade-low

Singapore bunker sales fall to 14-month low in April

Singapore bunker sales fall to 14-month low in April

Argus Carbon

Argus Carbon

Argus Crude Outlook

Argus Crude Outlook

Argus Americas Asphalt

Argus Refined Products Outlook

Argus Specialised Freight

Business intelligence reports