Tomorrow's diesel from Kalundborg

November 8, 2000, 14:30 CET

DKK 400 million is being invested by Statoil in a new diesel oil facility at its Kalundborg refinery near Copenhagen in Denmark.

The facility will thereby be in position as early as 2002 to meet the European quality requirements set to become standard for this product in 2005.

"This is an important decision which secures our future," says Kalundborg head Egil Sæl when the plans were announced today, 8 November.

Erling Øverland, executive vice president for Manufacturing & Marketing, confirmed that considerable uncertainty about the refinery's future has now been eliminated.

The new plant will cut the sulphur content of diesel oil by 80 per cent, from 0.005 to just 0.001 per cent. And the content of carcinogenic aromatics and polyaromatics can be substantially reduced.

While the European Union currently permits a sulphur content of 0.035 per cent for diesel oil, the Danish authorities have been pressing for a lower ceiling.

Mr Øverland expressed great satisfaction that Statoil is helping to put the industry ahead of the game on this occasion.

"Our industry has usually lagged behind with decisions on environmental measures. This time, we'll be delivering tomorrow's product before tomorrow arrives."

No decision has been taken on a corresponding investment at Statoil's Mongstad refinery north of Bergen.

Nils Bjørn Jordal, senior vice president for the refining unit, emphasises that this facility is very different from Kalundborg.

But he confirms that the group is considering measures and investment to ensure that Mongstad can also meet future requirements.