Where will we be in 2030? Preem’s path forward is influenced by its own ambitions and by significant external factors. Four strong external trends and the UN Global Goals have served as guidance as we draft our plan for 2030. We will tell you more about them here.
The oil and fuel industries are in constant flux. They have been characterized in recent years by considerable drops in crude oil prices, higher global demand for gasoline and growing stocks of crude oil and diesel. Extensive global energy changes, new environmental laws and changed industry regulations also have a substantial impact on Preem’s business.
Preem needs to take a proactive approach if it is to cope with all these changes and stay relevant. We can retool our refineries to develop new types of fuels – but the retooling period is long. We therefore need to be aware of what is happening around us today and how it could affect us tomorrow when planning Preem’s future production. We see four external trends that will have a major impact on the fuel industry by 2030.
1. Global energy supply changes
The technology behind solar and wind energy and battery storage is getting better and better, the Paris Agreement is driving global energy efficiency improvements, several cities and entire countries are discussing complete bans on combustion engines, and stricter requirements are being set for shipping emissions starting in 2020. Changes such as these will combine to result in a considerable decline in demand for high-sulfur heavy oils.
2. Sweden is moving toward a fossil-free vehicle fleet – rapidly
Sweden aims to be one of the world’s first fossil-free nations. Working toward a fossil-free vehicle fleet is a critical success factor in achieving that goal. Sweden’s climate goals and new environmental legislation are shaping a market with strong growth in renewable fuels and declining volumes of fossil fuel.
3. Renewable fuel growth in the forest industry
New legislation such as the mandatory green house gas reduction on fuel provides added incentives for fuel producers to transition to renewable production. Raw materials from Swedish forests also hold great potential in the form of residuals from the pulp industry and saw mills. These opportunities are stimulating new business constellations and partnerships, especially in the Swedish business community.
4. Disruptive technology in the automotive industry
New electric engines and hybrid technology may drive traditional car combustion engines out of the market. Car pools, on-demand cars and self-driving cars will grab an ever-larger share of the market, and technology advancements in this area are progressing faster than previously expected.
UN Global Goals
The Global Goals were adopted by the world heads of government at the UN Summit in New York on September 25, 2015. With 17 goals and 169 subgoals, it is the most ambitious agenda for sustainable development ever adopted. World leaders have committed to achieve incredible things by 2030: eliminating extreme poverty, reducing inequality and injustice, promoting peace and justice, and resolving the climate crisis. Preem has a vision to lead the transition toward a sustainable society and is working to help achieve the UN Global Goals. We are currently primarily focusing on the four goals that we think we can contribute to the most.
Affordable and clean energy Affordable and clean energy
Being Sweden’s largest fuel producer, Preem provides society with energy. In addition, we can and will lead the transition to more sustainable fuel.
Climate action Climate action
Preem has one of the most energy and environmentally efficient refinery systems in Europe, but we are still one of Sweden’s largest carbon dioxide emitters. We can reduce both our own climate footprint and that of others with investments in renewable fuel, energy efficiency improvements and climate-offsetting activities.
Responsible consumption and production Responsible consumption and production
We continuously strive to conduct our business in a more sustainable manner. For example, our refineries are among the most environmentally efficient in Europe. We make it easier for consumers to make sustainable choices by producing more sustainable fuels.
Decent work and economic growth Decent work and economic growth
Preem’s development and production operations are conducted in Sweden under good working conditions. We are also a large employer in rural areas. As a large Swedish company, especially in terms of exports, we contribute to economic growth.