• Major Climate Investment: Stockholm Exergi awarded SEK 20 billion over 15 years to fund Europe’s largest bio-CCS facility, enabling 800,000 tons of carbon dioxide removal annually.
• Paris Agreement Goals: Bio-CCS plays a critical role in achieving the climate targets of limiting global warming to 1.5°C or 2°C through negative emissions.
• Industry Shift: The project catalyzes a new green industry in Sweden, enabling companies to achieve net-zero goals with permanent carbon offsets.

Stockholm Exergi’s landmark bio-CCS project

Stockholm Exergi has secured government funding of over SEK 20 billion in the Swedish Energy Agency’s reverse auction to develop a bio-CCS (bioenergy with carbon capture and storage) facility. This funding will be distributed over 15 years from the start of geological storage operations and will help remove 800,000 tons of carbon dioxide annually—more than Stockholm’s annual road traffic emissions.

“This is a much-awaited announcement that we have worked hard for. The support is a prerequisite for us to be able to build Europe’s largest facility for capturing biogenic carbon dioxide,” said Anders Egelrud, CEO of Stockholm Exergi.

Why bio-CCS matters

To meet the Paris Agreement’s climate goals, permanent negative emissions are essential. Bio-CCS technology captures biogenic carbon dioxide before it enters the atmosphere, converts it into liquid form, and stores it permanently in bedrock. This process creates “minus emissions” that can counterbalance unavoidable emissions.

“There is now broad agreement that global warming cannot be limited to 1.5°C or below 2°C without negative emissions. Alongside emission reductions and land-based carbon sinks, geological carbon sinks are also needed to combat climate change,” explained Egelrud.

Related Article: Microsoft Signs Worlds Largest-Ever Carbon Removal Deal of 3.3 Million Tonnes with Stockholm Exergi

Catalyst for a green economy

The investment in bio-CCS marks the foundation of a new green industry in Sweden, supported by private financing and government initiatives. This move not only aligns with Sweden and the EU’s climate objectives but also offers companies a tangible path to net-zero emissions by purchasing permanent carbon offsets.

“The government’s investment in bio-CCS, together with private financing from climate-ambitious companies, means the starting point for a new green industry,” Egelrud emphasized.

Next steps for Stockholm Exergi

The planned facility, Beccs Stockholm, will be built at the bio-cogeneration plant in Värtan, where forest residues already produce sustainable electricity and district heating. By adding biogenic carbon capture, the facility will further enhance climate benefits.

An investment decision is expected in 2025, with carbon capture operations slated to begin within three years.

This innovative project represents a vital step toward achieving climate goals, setting a global benchmark for bio-CCS technology and green industry leadership.

Follow ESG News on LinkedIn