Alleima to Supply Key Components for Preem's Renewable Fuel Refinery Conversion
- 11-Jan-2025 12:00 AM
- Journalist: Yage Kwon
Alleima, a global manufacturer of high-value stainless steels and special alloys, has secured a crucial contract to supply heat exchanger tubes for Preem's Lysekil refinery. This refinery is undergoing a major transformation from fossil fuel processing to renewable fuel production, making Preem the largest producer of renewable jet fuel in Northern Europe.
The ambitious redevelopment project at Preem's IsoCracker plant (ICR) is slated for completion following a late 2024 start. Once operational, the converted plant will have the capacity to produce 1.2 million cubic meters of renewable fuels annually, significantly reducing fossil carbon dioxide emissions by 2-3 million tons each year. This shift will be accompanied by a corresponding decrease in Preem's fossil fuel output.
Tommy Johansson, project manager for the ICR project at Preem, emphasized the importance of this undertaking, stating, "Reducing greenhouse gas emissions is one of the great challenges of our time. I am therefore proud that Preem is now making the biggest change in the company's history... When the conversion is complete, we will be Scandinavia's largest producer of renewable jet fuel."
The conversion involves a fundamental shift in feedstock, moving away from fossil raw materials like crude oil to renewable sources. This transition necessitates advanced technology, particularly in the newly constructed pre-treatment unit (PTU). This unit will pre-treat and purify the renewable raw materials at high temperatures before they are used to produce renewable fuels such as Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF).
Group Coek, a heat exchanger manufacturer and long-standing customer of Alleima, secured the order with Preem and subsequently selected Alleima to provide the critical components. Alleima’s Sanicro 35, an austenitic stainless-steel alloy, will be used for the heat exchanger tubes, channels, and baffles. This material was chosen for its exceptional corrosion resistance.
Barinder Ghai, Director Technical Marketing, New Business Development for the Tube division at Alleima, explained the testing process that led to the selection of Sanicro 35. "Alleima has a long history as a supplier of special steel to Preem's refineries. The special alloy Sanicro 35 is intended for extremely corrosive environments and is an alternative to the use of nickel bases in the heat exchangers for preheating and cooling the renewable raw materials in the PTU. Before a decision could be made, we conducted extensive lab tests together with Preem, which showed that Sanicro 35 can withstand the extreme conditions and process environments of the pretreatment plant. This resulted in a strong alternative to the more expensive nickel-based alloys that are otherwise used,” Ghai explained.
This collaboration between Alleima, Group Coek, and Preem represents a significant advancement in the development and implementation of sustainable fuels, contributing to a greener future for Sweden and the broader region.