Soon Preem's new building can get green light - and become Sweden's largest emitter

Preem's plans to expand the West Coast refinery have upset climate-related concerns throughout the country. On Friday, the fuel giant could get the go ahead with its plans - which could lead to a doubling of the refinery's emissions of both sulfur and carbon dioxide.

In November last year, Preem received green light from the Land and Environmental Court. Over a hundred people, mainly residents in the immediate area, have, together with several environmental organizations, including the Swedish Society for Nature Conservation, appealed against the judgment.

If the Land and Environmental Court decides not to take up the case, it is previously fixed and the construction may be completed.

"Something is fundamentally wrong when we have a climate law that says that our emissions should be down to zero in 2045, and this allows an activity that can be Sweden's largest source of emissions," says Johanna Sandahl, president of the Swedish Society for Nature Conservation.

Preem wants to increase its production and in the new plant make gasoline and diesel with lower sulfur content, an investment of around SEK 15 billion.

According to the company, the planned expansion is expected to increase emissions from 1.7 million tonnes to 3.4 million tonnes of carbon dioxide equivalent per year. This corresponds to 17 percent of today's total emissions from all industry in Sweden - or more than six times the domestic aviation's annual emissions. It would then make the Lysekil refinery the facility in the country that emits the most climate-impacting gases.

When the Land and Environmental Court tried Preem's condition last year, the increased carbon dioxide emissions were not included in the verdict. The refinery is part of the EU's emission allowance trading, which means that Sweden cannot prevent the increase in carbon dioxide emissions, according to how our environmental bar is currently designed.

This is the opinion of the Climate Policy Council, whose mission is to evaluate how well the government's policy is leading to the attainment of climate targets.

"Either the system needs to be tightened, or we must take action in Sweden," says Tomas Kåberger, professor of renewable energy at Chalmers and member of the Climate Policy Council.

The Council therefore proposes that environmental legislation be revised. In their annual report of 2019, they recommend that Sweden "before legislation that gives the government the right to try to establish activities that counteract the opportunities to achieve the national climate targets".

Kåberger points out that other countries have already introduced such rules.

"Germany has a plan to shut down its coal-fired power plants and in the UK there is a minimum price of carbon dioxide emissions, which shows that other countries are introducing supplementary measures to achieve their climate targets," he says.

Preem is well aware of the criticism and says that they are doing what they can to reduce their emissions. Many residents in Lysekil are worried about the doubling of sulfur dioxide emissions that the new building may entail.

But according to the company, there is no basis for that concern.

- The studies we have done show that it will have no impact on human health, says Malin Hallin, Head of Sustainable Development at Preem.

The company emphasizes its efficient production methods and that they are doing everything they can to reduce their climate impact, including through increased production of renewable fuels, which are expected to significantly reduce emissions of climate-impacting gases in the coming years.

The gasoline and diesel to be produced at the refinery will be produced in such a way that it emits significantly less carbon dioxide and sulfur when it is then used, around 800,000 tonnes of carbon dioxide globally per year, according to the company's own estimates. Emissions of sulfur should also be reduced by 150,000 tonnes globally.

- We know that when we produce gasoline and diesel, we emit less than other comparable refineries do. If we produce one liter of diesel, we emit 17 percent less carbon dioxide according to comparative studies, says Malin Hallin.