Pyrocell commences production

Pyrocell, which is jointly owned by Setra and Preem, was formed in 2018 based on the business concept of producing bio-oil from sawdust. Production at the groundbreaking plant is now underway – and is the country's first pyrolysis oil plant for biofuel.

“The commence of production at Pyrocell signals another concrete step in our transition and in our work to achieve large-scale renewable production,” says Magnus Heimburg, CEO of Preem.

Pyrocell's plant is located next to Setra Kastet sawmill in Gävle. There, sawdust, which is a residual product in Setra's industrial process, is converted into non-fossil pyrolysis oil. The pyrolysis oil is then refined into renewable diesel and petrol at Preem's refinery in Lysekil.

“Pyrocell is a unique industrial investment that enables a sustainable value chain from forest to tank,” says Pontus Friberg, acting Chairperson of Pyrocell. “We are replacing fossil fuels and contributing to an increased proportion of renewables in fuels that result in lower carbon dioxide emissions.”

The plant will produce around 25,000 tons of non-fossil pyrolysis oil per year, corresponding to the annual fuel consumption of 15,000 passenger cars.

Pyrocell – from concept to completed plant

In 2016, Setra initiated a feasibility study on bio-oil production based on rapid pyrolysis technology.

The study was the basis for the application to the Klimatklivet initiative made in the spring of 2017. In the early summer, the news came that the plant had been granted SEK 117 million in investment support.
In 2018, an environmental permit was obtained.
In 2018, the company Pyrocell was formed, which is jointly owned by Setra and Preem. The company's business concept is to produce bio-oil from sawdust.
In 2019, the Boards of Setra and Preem made the decision to invest in the pyrolysis plant in Gävle.
In the summer of 2019, the construction project was initiated, and the procurement of a pyrolysis plant and chip handling system began.
On March 23, 2020, the project broke ground.
On September 2, 2021, production began.
About pyrolysis

Pyrolysis is a process in which a substance is rapidly heated to a high temperature so that the solid material evaporates and can be condensed into a liquid. Through pyrolysis, residual products from the forest such as branches, roots, tops and sawdust can be converted into an oil, which can then be refined into renewable petrol and diesel.

About biofuels
In 2018, a total of approximately 9,500,000 cubic meters of fuel were sold in Sweden, including approximately 1,900,000 cubic meters of biofuels, according to the Swedish Petroleum and Biofuels Institute (SPBI). About 15 percent of all these biofuels were produced in Sweden, and the rest were imported from other countries.

About Pyrocell
In August 2018, the company Pyrocell was formed, which is jointly owned by Setra and Preem. The company's business concept is to produce bio-oil from sawdust. Setra has the raw material, the sawdust, while Preem has refineries and petrol stations. The pyrolysis oil plant next to Setra's sawmill in Kastet outside Gävle creates a new strong value chain for renewable fuels, from forest to tank.