EU Approves €3B Carbon Capture Aid In Sweden

EU Approves €3B Carbon Capture Aid In Sweden - Carbon Herald
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The European Union (EU) has given the thumbs up to a €3 billion program designed to capture and store carbon dioxide (CO2) emissions in Sweden. 

This initiative, focused on CO2 released from biomass (plant or animal material), aligns with Sweden’s ambitious climate goals and the EU’s Green Deal push for net-zero emissions by 2050.

Sweden proposed the €3 billion scheme to incentivize projects that permanently remove biogenic CO2 through carbon capture and storage (CCS) technology. 

This aims to make CCS a practical tool in combating climate change. By boosting investor confidence in CCS, the plan hopes to drive down future costs and establish a robust CCS network within the EU.

Competitive Bidding Opens For Businesses

Companies operating in Sweden that emit biogenic CO2 and have projects capable of capturing and storing at least 50,000 tonnes annually can participate in competitive auctions starting in 2024. 

Successful bidders will receive grants per tonne of permanently stored biogenic CO2 under 15-year contracts. 

These grants will be adjusted to account for any project-related revenue (like carbon removal certificates) and other public support received.  

Relevant: Sweden Accelerates Net Zero Efforts With New Carbon Capture Advancements

The program, running until the end of 2028, is expected to significantly reduce Sweden’s greenhouse gas emissions by 85% by 2045 compared to 1990 levels. 

This directly supports both Sweden and the EU’s efforts to achieve climate neutrality by 2050.

The EU evaluated the program under established state aid regulations, specifically Article 107(3)(c) which allows member states to support certain economic activities, and the Guidelines on State aid for environmental initiatives, ensuring the program aligns with climate and emission reduction goals. 

Relevant: Aker Carbon Capture To Perform Feasibility Study For Nordbex In Southern Sweden

Margrethe Vestager, Executive Vice-President in charge of competition policy, said in a statement: “This €3 billion scheme will enable Sweden to capture and to permanently store a significant amount of carbon dioxide generated by biomass combustion or processing.”

“It will help Sweden and the EU to achieve their ambitious target of climate neutrality by 2050, while ensuring that competition distortions are kept to the minimum.”

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