Work begins on building Europe’s first plant for pyrolysis oil at Setra Kastet

Wood products company Setra and fuel company Preem are teaming up to produce pyrolysis oil from sawdust. The jointly owned company Pyrocell will manufacture raw material for the production of biofuels. Work is now beginning on construction of the plant alongside Setra’s Kastet sawmill in Gävle.  

Jointly owned by Setra and Preem, Pyrocell is an important link in the value chain for renewable fuel. Setra has the raw material, sawdust, while Preem has refineries and fuel stations. The sawdust will be processed into a renewable raw material for biofuels at Pyrocell’s pyrolysis plant, ready for further processing at Preem’s refinery in Lysekil.

“We’re extremely pleased that Pyrocell is now moving from planning to the construction phase of our first commercial plant for the production of renewable raw material using pyrolysis technology. The plant will be delivered by TechnipFMC, with technology from Dutch firm BTG-BTL,” explains Pontus Friberg, the project owner and chairman of Pyrocell AB.

“We’re now taking another step in our vision of leading the transition to a sustainable society. This investment is a clear step in the right direction that sees us take full advantage of Sweden’s unique potential for the production of renewable fuels,” says Petter Holland, CEO of Preem.

“Our strategy is to increase the value and the climate benefits of our products, which is why we’ve chosen to focus on the production of bio-oil from sawdust, which can be used as a raw material in the production of biofuels. This commercial processing of sawdust will help us contribute to the goal of fossil-free transport in Sweden by 2030,” says Anders Nordmark, acting CEO of Setra.

Construction work will begin in the autumn and the plant is expected to be up and running in 2021.
The plant will produce around 25,000 tonnes of pyrolysis oil per year.

In 2017, Setra was granted investment aid through the government’s Klimatklivet initiative, which supports local and regional measures to reduce emissions of carbon dioxide and other gases that affect the climate. The bio-oil is an important step towards meeting the goal of fossil-free transport in Sweden by 2030. The partnership with Setra is part of Preem’s ambition to manufacture 3 million cubic metres of renewable fuel at refineries in Lysekil and Gothenburg by 2030. 


FACTS – Pyrolysis

Pyrolysis is a process in which a substance is rapidly heated to a high temperature so that the solid material is vaporised and can be condensed into a liquid. Through pyrolysis, waste products from the forest – branches, roots, tops – and sawdust can be turned into oil, which can then be refined into renewable petrol and diesel.

FACTS – Biofuels
In 2017, a total of around 9 million cubic metres of fuel was sold in Sweden, of which just over 1.9 million was biofuel, according to the Swedish Petroleum and Biofuels Institute (SPBI). Around 15 percent of all biofuel was produced in Sweden, with the rest being imported from other countries.

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