Preem and Beowulf Energy Sweden LLC (US) who recently signed a cooperation framework agreement, will examine the possibilities of a new residue hydrocracking plant, licensed by Chevron Lummus Global LLC (CLG), to better meet the demand for transportation fuels at Preem’s Lysekil refinery.

CLG’s innovative LC-SLURRY technology upgrades as much of the heavy oil as possible to sulfur-free gasoline, diesel while also meeting the new rules for sulfur content in bunker fuel. With LC-SLURRY technology, Preem will produce 100% ultra-low sulfur products from their vacuum residue.

CLG, a joint venture between Chevron and CB&I and the leading provider of hydroprocessing technologies and catalysts expanded its technology portfolio in 2015 to include Chevron’s slurry residue hydrocracking technology and CB&I’s coking and SDA business. This gave CLG the most extensive heavy oil upgrading portfolio available and with the application of LC-SLURRY technology at Preem, the most advanced residue conversion complex.

CLG will partner with Beowulf Energy and Preem and provide its technology, design and permitting support through CB&I for this project in Sweden. CLG and Preem previously worked together on a hydrocracker that successfully started operations 10 years ago.