Worley Secures Contract for Renewable Fuel Conversion at Lysekil Refinery in Sweden
Worley has been awarded a contract by Preem for front-end engineering design verification for the conversion of the ICR plant at the Lysekil refinery, transitioning from conventional diesel to renewable diesel and sustainable aviation fuel. The project is set to begin feed verification in August 2025, with the engineering procurement and construction management phase expected to commence in early 2026, pending Preem's final investment decision. This initiative aims to position Preem as Northern Europe's largest producer of renewable aviation fuel and reduce significant carbon emissions.
Theia Market Signal Identification - AI AssistedWorley has secured a significant contract with Preem for front-end engineering design verification aimed at transforming the ICR plant at Lysekil refinery in Sweden. This ambitious project marks a pivotal shift from traditional diesel production to the generation of renewable diesel and sustainable aviation fuel (SAF), signaling a progressive step in the region’s energy landscape.
The feed verification process is scheduled to commence in August 2025, with the contract extending into the engineering, procurement, and construction management (EPCM) phase anticipated to begin in early 2026, contingent upon Preem's final investment decision. Through this transformation, the Lysekil plant is poised to emerge as the largest producer of renewable aviation fuel in Northern Europe, while also establishing itself as a leading supplier of renewable fuels for road transportation.
Worley will spearhead the feed verification from its Swedish office, leveraging expertise from its global network to ensure the project's success. The scope of the work entails the complete repurposing of the existing ICR unit, traditionally responsible for producing lighter, high-value hydrocarbon products. This notable conversion will pivot the unit towards generating renewable fuels derived from vegetable and animal oils, a decisive move away from fossil fuel reliance.
Jan Narvestad, Senior Vice President of Worley Nordics, emphasized the significance of this award for operations in Sweden and the broader Nordic region. He remarked that the project's scale and ambition underscore Worley's commitment to fostering sustainable change in collaboration with its clients.
Preem anticipates that the refinery's conversion could lead to a substantial reduction in carbon emissions, estimating a decrease of 2.3 million tonnes of CO2 equivalent annually at the end-user level, alongside approximately 200,000 tonnes of CO2 equivalent emissions reduction at the refinery itself. This venture not only reflects a vital transition for Preem but also highlights the growing shift towards sustainable energy solutions in Europe.
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