Wood products company Setra and fuel company Preem are teaming up to produce pyrolysis oil from sawdust. The jointly owned company Pyrocell will manufacture raw material for the production of biofuels. Work is now beginning on construction of the plant alongside Setra’s Kastet sawmill in Gävle, Sweden.

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Pyrocell begins construction of pyrolysis plant at Setra's Kastet sawmill in Sweden

Wood products company Setra and fuel company Preem are teaming up to produce pyrolysis oil from sawdust. The jointly owned company Pyrocell will manufacture raw material for the production of biofuels. Work is now beginning on construction of the plant alongside Setra’s Kastet sawmill in Gävle, Sweden, as the company says in the press release received by Lesprom Network.

Jointly owned by Setra and Preem, Pyrocell is an important link in the value chain for renewable fuel. Setra has the raw material, sawdust, while Preem has refineries and fuel stations. The sawdust will be processed into a renewable raw material for biofuels at Pyrocell’s pyrolysis plant, ready for further processing at Preem’s refinery in Lysekil.
“We’re extremely pleased that Pyrocell is now moving from planning to the construction phase of our first commercial plant for the production of renewable raw material using pyrolysis technology. The plant will be delivered by TechnipFMC, with technology from Dutch firm BTG-BTL,” explains Pontus Friberg, the project owner and chairman of Pyrocell AB.

“Our strategy is to increase the value and the climate benefits of our products, which is why we’ve chosen to focus on the production of bio-oil from sawdust, which can be used as a raw material in the production of biofuels. This commercial processing of sawdust will help us contribute to the goal of fossil-free transport in Sweden by 2030,” says Anders Nordmark, acting CEO of Setra.

Construction work will begin in the autumn and the plant is expected to be up and running in 2021. The plant will produce around 25,000 tonnes of pyrolysis oil per year.