11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Preem, Sweden’s largest fuel company with a refining capacity of over 4.7 billion gallons of crude annually, announced plans to convert its Lysekil refinery to produce sustainable aviation fuel (SAF) and renewable diesel. Preem has two refineries in Sweden, Preemraff Göteborg in Gothenburg and Preemraff Lysekil outside of Lysekil.
Preem’s conversion involves reconstruction of the IsoCracker plant (ICR) at the refinery in Lysekeil, which is currently used for diesel production. Following the conversion, the plant will shift focus to producing SAF and renewable diesel.
Preem is increasing its production of renewable fuels and has a goal of producing over 1.3 billion gallons of low-carbon fuel by 2035. The Lysekil refinery conversion is scheduled to begin in 2024 with an anticipated completion date in 2027.
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