Through their joint venture Pyrocell, Setra Group AB and Preem have invested in a plant to produce bio-based non-fossil pyrolysis oil from sawdust. The plant is located close to Setra Kastet sawmill in Gävle, enabling the mill to easily deliver its waste product – sawdust. The pyrolysis oil is then refined into fossil-free biofuel for the transport sector at Preem’s refinery in Lysekil.

“Pyrocell’s ability to deliver sawdust-based non-fossil raw material to Preem’s renewable fuel production and to make a real contribution toward lower transport sector emissions – from forest to tank – is a historic event.”

Pontus Friberg, Chairman of Pyrocell

SEK and Danske bank are financing the investment through an export credit of EUR 27 million. Atradius Dutch State Business, the export credit agency for the Netherlands, is guaranteeing 95 percent of the export credit.

“Production is running smoothly, and all parties are extremely pleased and proud. The client is also pleased with the support received from its financiers, SEK and Danske bank as well as Atradius DSB.”

Anna Karin Ljung, senior client executive at SEK

Pyrolysis oil can replace the use of fossil oil, for example in heating boilers in the energy sector and in industry more widely. It can also be used as raw material in chemical manufacturing or, as in the case of Pyrocell, to produce biofuels, which will play a significant role in the transition to a fossil-free transport sector.