Stockholm Exergi Secures SEK 20 Billion Funding for Bio-CCS Technology.
Stockholm Exergi, a leading Swedish energy firm, has announced it has secured significant funding for its bio-CCS (bioenergy with carbon capture and storage) initiative. The Swedish Energy Agency's reverse auction has awarded Stockholm Exergi SEK 20 billion (approximately USD 1.8 billion) to support the development of a cutting-edge bio-CCS technology that aims to capture biogenic carbon dioxide before it enters the atmosphere. This funding is part of a long-term commitment, set to be distributed over a period of up to 15 years.
Key Funding for Europe's Largest Carbon Capture Facility
Anders Egelrud, CEO of Stockholm Exergi, expressed his excitement about the funding, saying, "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."
The bio-CCS technology will be implemented at Stockholm Exergi's bio-cogeneration plant located in Värtan, Stockholm. The facility is designed to capture a substantial 800,000 tonnes of carbon dioxide annually—equivalent to the emissions produced by Stockholm's road traffic each year.
Innovative Facility Will Integrate Bioenergy and Carbon Storage
The facility will integrate a bioenergy-based combined heat and power plant, utilizing byproducts from industries such as forestry, sawmill, and pulp and paper. A carbon capture and storage system will be embedded to extract CO2 from the plant's exhaust gases. The captured CO2 will be cooled, compressed into liquid form, and transported for long-term storage in sedimentary rock beneath the North Sea, where it will gradually mineralize.
The development of this innovative facility builds on Stockholm Exergi's environmental permit granted in 2024. The company plans to make a final investment decision by early 2025, with carbon capture operations set to commence within three years.
Partnerships and Future Outlook for Carbon Removal
In addition to the funding, Stockholm Exergi has secured carbon removal agreements with major global companies, including Microsoft, Alphabet, Meta, JPMorgan Chase, and H&M. These partnerships represent buyers from the carbon removal coalition Frontier and solidify Stockholm Exergi's position as a leader in the bio-CCS field.
Bioenergy Carbon Capture and Storage (BECCS) is a technology that combines bioenergy production with carbon capture and storage to reduce atmospheric carbon dioxide (CO2) levels. It involves three key processes:
- Bioenergy Production: Biomass, such as wood, agricultural waste, or other organic materials, is burned or converted into energy (heat, electricity, or biofuels). This produces CO2, but because the biomass was once part of a carbon cycle (i.e., it absorbed CO2 from the atmosphere while growing), the emissions are considered "biogenic" rather than fossil.
- Carbon Capture: The CO2 produced from the bioenergy process is captured before it is released into the atmosphere. This is typically done by using specialized equipment that traps the CO2 in the exhaust gases produced during combustion or other processes.
- Storage: The captured CO2 is then compressed and transported to a secure storage site, often deep underground, where it is stored in geological formations, such as depleted oil and gas fields or deep saline aquifers. Over time, the CO2 will mineralise or otherwise remain safely contained underground.
The primary advantage of BECCS is that it not only produces renewable energy from biomass but also helps reduce the amount of CO2 in the atmosphere, making it a potentially significant tool in mitigating climate change. The process essentially creates a "carbon-negative" outcome by removing more CO2 from the atmosphere than it emits. This makes BECCS an important technology for achieving net-zero emissions goals and combating global warming.
Projects like Stockholm Exergi's BECCS facility in Sweden and the Northern Lights project in Norway are examples of BECCS being developed and implemented on a large scale in Europe.
