Swedish energy company Stockholm Exergi will receive approximately USD 1.8 billion to support its biocarbon capture and storage (bio-CCS) project. The funding, which comes through a reverse auction conducted by the Swedish Energy Agency, will be disbursed over a period of up to 15 years.
The company plans to establish a bioenergy facility with carbon capture and storage (BECCS) at its Värtan bio-cogeneration plant in Stockholm. The project aims to capture 800,000 tonnes of biogenic carbon dioxide annually, contributing to climate mitigation efforts.
Stockholm Exergi’s CEO, Anders Egelrud, noted that this funding is essential for developing the facility, which is expected to be the largest of its kind in Europe. The BECCS facility will integrate a bioenergy-based combined heat and power plant that utilizes residues from forestry, sawmills, and pulp and paper production. It will capture CO2 from the plant’s flue gases, cooling and compressing it into liquid form for transport and permanent storage in sedimentary bedrock beneath the North Sea, where it will mineralize over time.
The project has also secured carbon removal agreements with companies, including Microsoft and the carbon removal coalition Frontier, which represents buyers such as Alphabet, Meta, JPMorgan Chase, and H&M.
Egelrud commented on the significance of the government’s investment in bio-CCS, indicating it could help foster a new green industry in Sweden and support the EU’s long-term climate goals.
