The new biorefinery owned by SCA and the energy company St1 is now inaugurated. When fully operational in Gothenburg, the refinery will contribute an annual production of around 200,000 tons of renewable fuel.
Mikael Källgren, Business Area Manager for Renewable Energy at SCA, notes that the inauguration marks a new milestone for SCA. The facility is the first where SCA produces renewable vehicle fuel, and SCA’s share in the facility is 25 percent. The partnership and production at the facility also mean that SCA’s pulp mills will be able to supply tall oil, a by-product from pulp production, for further processing at the new factory. The factory has undergone a start-up phase since the beginning of the year and has now commenced operations to produce sustainable aviation fuels (SAF), biodiesel (HVO), bio-naphtha, and bio-LPG. The inauguration of the refinery in Gothenburg also marks the culmination of a long process where an idea and vision have transformed into a state-of-the-art facility.
“It is a historic step for SCA’s renewable energy business, and the partnership with St1 gives us the opportunity to create additional value and more climate benefit from each tree. By refining our tall oil, which is a by-product from the company’s pulp mills, we become even more resource-efficient and contribute to society’s better conditions for transitioning traffic. SCA’s climate benefit is already around 13 million tons of carbon dioxide equivalents today, compensating for approximately a quarter of the country’s territorial emissions, and we are convinced that this factory can help increase our positive contribution,” says Mikael Källgren.
Roger Östlin, Head of Biofuels at SCA, claims that the jointly owned facility in Gothenburg will be an important step in establishing a profitable business with vehicle fuels, where production is also assessed to have significant potential to further enhance the company’s considerable climate benefit.
The estimate is that the combined production of biofuel at the facility, 200,000 tons, could create an annual climate benefit of around 500,000 tons of carbon dioxide equivalents.
“Being efficient with resources and creating as much value as possible from each tree is a guiding principle within SCA, and in that regard, biofuel has great potential. By extending our value chains with the processing of by-products, in this case, tall oil, we can supply society with the renewable products needed for a green transition,” says Roger Östlin.
Energy, Business and Industry Minister Ebba Busch, who attended the inauguration, emphasizes that the partnership and the new bio-refinery strengthen domestic fuel production and contribute to EU’s climate efforts.
“Increased domestic production of biofuel is important for Sweden and the EU to achieve our ambitious climate goals, but it is also important to increase our ability to produce our own fuels. The need for biofuels is clear; not all transportation can be electrified, so all efforts are needed to drive Sweden towards net-zero emissions, and this refinery is a step in that direction,” says Ebba Busch.
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