Setra begins construction of pyrolysis oil plant at its Kastet sawmill in Sweden

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The first ground was broken for Pyrocell’s plant at Setra’s Kastet sawmill in Gävle, Sweden. Pyrocell will be manufacturing non-fossil pyrolysis oil as a raw material for producing renewable fuel.  

Wood industry company Setra and fuel company Preem are working together to produce fossil-free pyrolysis oil from sawdust through the jointly-owned company Pyrocell. Pyrocell’s plant will transform sawdust, a waste product in Setra’s industrial process, into pyrolysis oil. The pyrolysis oil will be processed further to make renewable diesel and petrol at Preem’s refinery in Lysekil.

“This investment is part of Setra’s strategy to increase the value and the climate benefit of our products. Pyrocell is an important link in the value chain for renewable fuel. This commercial processing of sawdust will help us contribute to the goal of fossil-free transport in Sweden by 2030,” says Katarina Levin, CEO of Setra.

The ground-breaking plant will produce about 25,000 tonnes of pyrolysis oil per year, equivalent to the annual fuel consumption of 15,000 cars. The aim is for the plant to be brought on stream in the 4Q 2021.

Helping Sweden to become self-sufficient in liquid fuel

“Waste products from our Swedish forests offer unique potential in helping Sweden to eventually become self-sufficient in liquid fuel, instead of importing 85% of it as we do today. This investment is part of Preem’s ambition to manufacture 5 million cubic metres of renewable fuel by 2030 in our refineries in Lysekil and Gothenburg,” says Petter Holland, CEO of Preem.


Setra is one of Sweden’s largest wood products companies.

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