🇩🇰 Transforming VAROPreem’s refinery for a climate-neutral future

VAROPreem’s upgraded Synsat plant in Lysekil will reduce Sweden’s total fossil CO₂ emissions by over 4 percent. The project is an intricate puzzle, and an important piece is the newly completed revamp of the plant’s hydrogen production.

The Synsat facility at Lysekil is a cornerstone of VAROPreem’s transition strategy, enabling the co-processing of renewable feedstocks and significantly increasing the production of renewable diesel. This upgrade allows the plant to produce an additional 0.9 million tonnes per annum of renewable diesel, tripling Preem’s renewable production capacity and reducing fossil carbon dioxide emissions in the user stage by 1.2–1.7 million tonnes per year.

The reconstruction of the Synsat plant is part of a broader investment to transform the refinery from conventional diesel production to the production of renewable diesel and sustainable aviation fuel (SAF/biojet). The project includes the complete conversion of the existing ICR unit, repurposing it to produce renewable fuels based on vegetable and animal oils/fats, marking a significant step away from fossil-based production.

Over 1,000 people have been involved during the construction period, and the investment strengthens the competitiveness of the refinery in Lysekil, making it Scandinavia’s largest producer of renewable fuels.

VAROPreem’s strategy aims to triple EBITDA by 2026, with 50 percent of earnings generated from sustainable energy activities. The Lysekil manufacturing hub is the largest in Scandinavia and one of the most complex in Europe, with a total refining capacity of 220,000 barrels per day.

The Synsat project is a key component of VAROPreem’s commitment to balancing ongoing demand for traditional fuels with rapid growth in low-carbon alternatives, supporting the company’s goal of becoming a leading energy provider in the mobility and industrial sectors.

Originally published on 18 February 2026 by COWI.