In 2024, Preem reduced its fossil climate emissions by approximately 700,000 tons compared to 2023. This means that since 2018, the company has achieved a reduction of just over twelve percent across its entire value chain. These results are presented in Preem's Annual and Sustainability Report, underscoring the company’s goal to cut emissions by at least 90 percent throughout its value chain by 2035.
Since 2018, Preem has reduced fossil emissions from just over 60 million tons of carbon dioxide equivalents to just over 52.5 million tons in 2024. The reduction in 2024 alone amounted to 700,000 tons compared to the previous year. The largest portion of fossil emissions in 2024 (89 percent) occured in the user phase when fuels are used in vehicles. The majority of these emissions (61,5 percent) were generated in Preem’s export markets across Europe.
- I am proud of Preem's progress in our transition and our commitment to reducing our climate impact. We remain determined to push forward. The most important measure for further reducing fossil emissions lies in our ability to phase out fossil fuels by continuing to invest in the transformation of our refineries, thereby increasing the supply of renewable products with lower climate impact. This also positions us as a key player in reducing fossil emissions in the transportation sector, while ensuring a stable fuel supply, says Magnus Heimburg, CEO of Preem.
Continued investments in renewable fuel
In 2024, Preem invested circa SEK 2.8 billion in the handling and production of renewable fuels and other climate-reducing measures. A significant milestone was the completion of the reconstruction of the so-called Synsat unit in Lysekil at the end of the year. This unity will produce diesel with renewable blending, increasing the renewable production capacity by approximately one million cubic meters per year. In 2025, startup work will continue to bring the unit to full capacity.
- At Preem, we see that sustainability and profitability go hand-in-hand. By enabling increased production of renewable fuels, we are fundamentally transforming both our operations and business. However, converting our refineries from fossil to renewable production is a complex process that requires time, expertise, and financial resources. I am therefore pleased that we can continue to fully invest in our transition, says Magnus Heimburg.
Preem is committed to reducing its emissions by at least 90 percent across the entire value chain by 2035. The emission reductions that Preem intends to achieve will not be linear, but the pace depends on technology shifts, decisions on conversions and the needs of society. The transition is also affected by the pace of permit processes, the possibility of financing and political decisions, which are necessary for Preem to make the investment decisions required to maintain a high pace of work and progress in the projects.
Another major milestone during the year was when Preem was granted a green credit guarantee from the National Debt Office. The financing of circa SEK 2.8 billion enables a large-scale reconstruction of the ICR unit in Lysekil. The company plans to invest a total of circa SEK 5.5 billion in this project, which, when completed, will produce both sustainable aviation fuel (SAF) and renewable diesel.
Further investments in the transition during 2024:
• Continued expansion of charging infrastructure. During the year, Preem installed a total of 55 new charging points at ten stations.
• Started the use of HVO100 renewable diesel in all Preem’s Swedish procured land transportations, reducing fossil emissions from its own deliveries from 4 000 tons to 400 tons of carbon dioxide equivalents.
• Reconstruction of depots in Helsingborg and Norrköping for handling renewable raw materials used in production continued.
Robust financial results in a challenging market
The financial year 2024 was, as expected, influenced by global market prices for raw materials and refined products, which in turn were affected by geopolitical and economic developments.
According to the 2024 annual report, Preem’s total revenue amounted to SEK 131 billion, a decrease from SEK 138 billion in 2023. Operating profit totaled SEK 2.2 billion, compared to SEK 7.9 billion in the previous year.
Despite the deteriorated result, Preem continues to show a strong financial position, with total liquidity of SEK 16 billion.
- We continue to see strong demand for our products. However, following two years of exceptional performance in the sector, 2024 saw a gradual normalization of the European refined products market. Given this, I am pleased that we have delivered a stable financial result with a strong liquidity position. This allows us to continue driving our transition forward, concludes Magnus Heimburg.
Read the complete Annual and Sustainability Report here.