Preem and CCS How come an oil refiner invest in Carbon Capture technology and infrastructure?

Preem: In short ”One of Sweden’s most important energy suppliers 80% 50% 7/10 570 of Sweden’s refining capacity of supplied petroleum products in Sweden freight services in Sweden runs on Preem’s diesel service stations

Preem’s Climate Footprint Emissions by Scope Indirect emissions that occur in value chain – mainly consumption Direct emissions from owned and controlled sources Indirect emissions from the generation of purchased energy Shate of emissions by Scope

Preem’s vision The road map to a sustainable future… 3 000 000 m3 renewable fuels by 2030 (1 500 000 m3 by 2024) Renewable hydrogen production Energy efficiency Carbon Capture and Storage (CCS)

Ideal Conditions for CCS LOCATION Deep water access in both Lysekil and Gothenburg Proximity enables a Skagerrak cluster and CO2 HUB for efficient logistics - from capture to storage Oslo INFRASTRUCTURE Lysekil Preem has two large Hydrogen plants at each site where CO2 concentration is high Excess heat, high potential for energy utilization with CO2 capturing Gothenburg

Sweden’s largest demonstration project at Lysekil THE PROJECT SCOPE Demonstration of carbon capture using Aker Solutions technology Look into utilizing waste heat streams to reduce the primary energy requirements. A policy and legislation review in also included in the project Financing from both Norwegian GassNova and Swedish Energy Agency for a three year project Demonstration of carbon capture at Lysekil’s Hydrogen Production unit, which will form the basis for a full scale carbon capture design TIMELINE COMING UP The project started in the beginning of 2019. The demonstration is planned for 2020, followed by project completion and reporting. Take all learnings from this project into a pre-engineering study. This would start late 2021 / early 2022. Final investment decision in 2022. A CCS-plant could be ready in 2024. * Preem in collaboration with Chalmers University , SINTEF, Aker Solutions and Equinor

Thank you for the attention! “Preem’s vision is to lead the transition towards a sustainable society”