The transition to a fossil-free transport sector
Pyrocell connects forests with the petrochemical industry by utilizing sawdust from sawmills to produce biofuel – thereby contributing to the transition to a sustainable society.
Through their joint venture Pyrocell, Setra Group AB and Preem have invested in a plant to produce bio-based non-fossil pyrolysis oil from sawdust. The plant is located close to Setra Kastet sawmill in Gävle, enabling the mill to easily deliver its waste product – sawdust. The pyrolysis oil is then refined into fossil-free biofuel for the transport sector at Preem’s refinery in Lysekil.
“Pyrocell’s ability to deliver sawdust-based non-fossil raw material to Preem’s renewable fuel production and to make a real contribution toward lower transport sector emissions – from forest to tank – is a historic event”, says Pontus Friberg, Chairman of Pyrocell.
SEK and Danske bank are financing the investment through an export credit of EUR 27 million. Atradius Dutch State Business, the export credit agency for the Netherlands, is guaranteeing 95 percent of the export credit
“Production is running smoothly, and all parties are extremely pleased and proud. The client is also pleased with the support received from its financiers, SEK and Danske bank as well as Atradius DSB”, says Anna Karin Ljung, senior client executive at SEK.
Pyrolysis oil can replace the use of fossil oil, for example in heating boilers in the energy sector and in industry more widely. It can also be used as raw material in chemical manufacturing or, as in the case of Pyrocell, to produce biofuels, which will play a significant role in the transition to a fossil-free transport sector.
Facts
Transaction: Export credit
Amount: EUR 27 million
Start: 2019
Maturity: 2030
Guaranteed by: The ECA for the Netherlands, Atradius Dutch State Business to 95 percent
Year: 2021