Green credit guarantee for loan to Preem

News 20 May 2024

The Swedish National Debt Office has decided to issue a credit guarantee for a loan to Preem for financing the conversion and expansion of the refinery in Lysekil to increase the production capacity of renewable fuels. The guarantee is provided within the framework of the guarantee scheme for green industrial investments.

The loan constitutes partial financing of the conversion and expansion of the refinery in Lysekil. The conversion is in regard to a so-called Isocracker unit, which after the conversion will be able to produce renewable aviation fuel (bio-jet/SAF) and renewable diesel (HVO100). The expansion concerns a facility for the pre-treatment of renewable raw materials.

The loan amounts to approximately EUR 240 million and is being issued by the Swedish Export Credit Corporation and Crédit Agricole Corporate & Investment Bank. The Debt Office’s guarantee covers 80 per cent of the loan amount. A fee is taken out in line with market terms.

After the conversion and expansion in Lysekil, Preem will be able to increase its production of renewable fuel by approximately 1.2 million cubic metres per year, while the fossil-fuel production capacity will decrease by the corresponding amount. The Debt Office assesses that Preem’s investment meets the criteria for a green credit guarantee.

The Debt Office has previously issued a green credit guarantee for Preem’s investment in regard to the conversion of the Synsat plant in Lysekil. Read the previous press release here: 

Debt Office decides on first green credit guarantee

About green credit guarantees

In order to be eligible for a green credit guarantee from the central government, the investment in question must contribute to Sweden’s environmental and climate policy goals. The Debt Office conducts its assessment on the basis of the criteria set forth in Ordinance (2021:524) on state credit guarantees for green investments.

Read more about the Debt Office’s mandate to provide green state credit guarantees, and which criteria form the basis of the environmental evaluation, on the Debt Office’s website: 

Credit guarantees for green investments