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The road to climate neutrality

A climate-neutral value chain by 2035

With the climate target in mind, we are fundamentally changing our business.

Preem supports the Paris Agreement and wants to limit global warming in line with science. Therefore, we are reducing emissions throughout our entire value chain: from extraction of raw materials to production, distribution and use of the products.

Preem's goal is to demonstrate a climate-neutral value chain by 2035, which means 90 percent lower emissions compared to the base year 2018*. To reach the goals in time, we are also working towards two interim goals to reduce:


(1) direct greenhouse gas emissions by at least 50 percent by 2030 (Scope 1) and

(2)  all greenhouse gas emissions throughout the entire value chain by at least 30 percent by 2030 (Scope 1, 2 and 3).

What we mean by Climate Neutrality and Net Zero Emissions

Preem follows the definition of "Climate Neutrality'' and "Net Zero Emissions'' used by the Science Based Target Initiative, SBTi. The definition is aligned with the requirements of the Paris Agreement.

It requires at least 90 percent lower emissions throughout the entire value chain, at the latest by 2050. The remaining 10 percent may be handled through so-called complementary measures.

We are adapting the refineries to a renewable and reduced production

Through renovation and new construction of the refineries, we are increasing the renewable production to at least 2.5 million cubic meters by 2026 and about 5 million cubic meters by 2035.

In parallel, we are reducing the fossil fuel production and adapting the total production capacity to the lower needs of the future.

We are switching to sustainable resources

We are reducing the use of crude oil and switching to renewable alternatives, such as bio-oils from forestry, agriculture and food industry residues.

Hydrogen is a feedstock in fuel production. Today, hydrogen is mainly produced from fossil gas. Therefore, Preem wants to shift from fossil gas to fossil-free hydrogen production, including biogas and fossil-free hydrogen from water and electricity.

We capture and bind carbon dioxide

Preem's refineries are some of Sweden's largest single sources of emissions. Fossil emissions are decreasing as we replace fossil raw materials with renewable ones.

We also plan on installing technology for carbon dioxide capture, known as CCS (Carbon Capture and Storage), where carbon dioxide is captured and stored rather than emitted. When CCS is combined with emissions from renewable raw materials, it effectively entails a reduction of carbon dioxide levels in the atmosphere.

We are adapting our offer to the needs of a more sustainable society

We are gradually increasing the supply of renewable liquid fuels to both the Swedish and international market. We have also initiated a large-scale roll-out of charging stations for electric cars.

Producing and offering hydrogen as a vehicle fuel is also an area under development and an option for the future.

Preem is also looking into broadening the operations and including more products necessary in a sustainable society. One example is renewable refined products that are further refined in the petrochemical or plastics industry.

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