Switzerland has awarded federal funding to a carbon capture and storage initiative following a tightly contested selection process, underscoring the country’s effort to accelerate industrial decarbonization.
The winning proposal, submitted by Regionalwerke Baden AG, will receive up to 41.7 million Swiss francs ($52.6 million). The project emerged from a two-stage tender that initially drew 21 submissions. Seventeen applicants advanced to the second round, but only three full proposals were filed by the October 31, 2025 deadline.
Developed in partnership with BKW AEK Contracting AG and Linde Gas Schweiz AG, and supported by Airfix Carbon AG and South Pole AG, the project focuses on capturing emissions from a biomass power plant in Otelfingen. Part of the captured carbon dioxide is slated for transport to a storage facility elsewhere in Europe, where it will be permanently sequestered. The remainder is intended for reuse as a climate-neutral industrial gas, replacing fossil-based carbon dioxide in industrial processes.
The initiative also introduces a separation technology that has not previously been deployed in Switzerland, marking a technical milestone for the domestic energy sector.
Swiss carbon capture and decarbonization picking up speed
The funding decision forms part of a broader set of climate-focused tenders launched in 2025 under the country’s Climate and Innovation Act. A separate program aimed at building charging infrastructure for electric trucks has also moved forward, with the Swiss Commercial Vehicle Association and consulting firm EBP selected to lead implementation. Since its launch at the start of 2026, the program has attracted more than 100 applications, backed by 20 million Swiss francs in federal support.
The measures fall under the ITINERO program (link in German), which channels up to 1.2 billion Swiss francs in public funding through 2030 to support emissions reductions and mitigate investment risks tied to key infrastructure.
Across Europe, similar efforts are gaining traction as governments look to scale carbon management solutions and electrify transport. Analysts say such public funding plays a crucial role in bridging the gap between early-stage innovation and commercial deployment, particularly in sectors where emissions remain difficult to eliminate.
Read more: Switzerland Advances CO2 Transport Plans With Penspen Pipeline Study
