The fuel producer has chosen to withdraw the application to expand the controversial oil refinery Preemraff. Climate activist Greta Thunberg cheers after the decision.
This is confirmed by the company in a press release on Monday morning.
The decision means that the project that according to the plan was to expand the refinery for around NOK 15 billion is now being phased out. The company states that the project is being wound up on the basis of the financial future prospects.
The news was first announced by CEO Magnus Heimburg in Preem in an interview with Swedish Radio.
– I think this is a very important decision. It says with great clarity that we are now turning our attention to accelerating the transition to a renewable production of fuel. So for me it feels very good to present this decision today, says Heimburg to the channel.
Greenpeace activists arrested – stormed Swedish oil refinery
– Huge victory for the climate movement
There has been a regular storm around the very controversial development in Lysekil, on the coast near the Norwegian border.
In mid-September, six Greenpeace activists were arrested after entering the refinery area. Then Greenpeace had for several days tried to stop a Norwegian-owned tanker that was to call at the refinery.
On Twitter, climate activist Greta Thunberg cheers after the decision.
– The Swedish oil company Preem has withdrawn its application to expand its oil refinery. An enlargement that would have made it impossible for Sweden to stay within the Paris Agreement. What a huge victory for the climate and environmental movement, writes Thunberg.
In the message from the company, Heimburg emphasizes that it is a “commercial decision” that is the basis for now scrapping the project.
– Winding up the ROCC project is a commercial decision made based on the project’s profitability and technical feasibility. The decision also makes the application from 2016 irrelevant, says Heimburg.
The company points out that the economic downturn and lower demand for fuel as one of the reasons why it is now scrapping plans. At the same time, the Swedish authorities have expressed a willingness to support domestic renewable fuel production, which has improved the investment climate, the company writes.
– The focus on renewable fuels is a cornerstone of Preem’s long-term business strategy. In a situation where tough priorities must be set, it is crucial for Preem’s financial stability and competitiveness to allocate resources to the projects that are most clearly in line with the overall strategy and I look forward to leading this major and important change, says Heimburg.