|
|
 |
|
November 23, 2005
Renewable fuel - new niche for Perstorp
Preem Petroleum AB and Perstorp AB are teaming up to increase sales of renewable fuel in Sweden. Perstorp will build a new factory unit for producing Rape Methyl Esters (RME).
The new plant’s capacity will initially be around 60,000 m3 per year, but is planned to rapidly expand to keep up as market demands increase.
Full-scale production of RME will start at the beginning of 2007. The aim is to meet Sweden’s need of RME for a 5 per cent mix in diesel. Investment in production capacity will be at Perstorp’s factory in Stenungsund, where existing infrastructure will be utilised for RME production.
RME is a refined product from European rapeseed, used as a renewable component to mix with diesel or as a fuel in its own right.
“We are very pleased to be partnering Sweden’s biggest oil company Preem as one of the professional, leading players for vehicle fuels. The market for renewable vehicle fuels is a new niche for us that we believe has enormous future potential,” says Lennart Holm, President and CEO of Perstorp AB.
The partnership means that Perstorp will take care of production and Preem will take care of sales and distribution.
“Developing and introducing renewable fuel as an addition to our petroleum products is an important part of our product strategy. We are currently working towards meeting with the government and authorities to allow us a mix of 5 per cent renewable RME in Diesel. With Perstorp as a partner we are guaranteed secure, stable production, which is of the utmost importance for us in order to manage a greater mix of renewable components in diesel,” says Michael G:son Löw, President and CEO of Preem Petroleum AB.
|
|
|
|
