Stockholm Exergi has been awarded more than $1.8 billion (over 20 billion SEK) in the reverse auction for BECCS launched by the Swedish Energy Agency.
The company will use the hefty funding to advance work on its planned Beccs Stockholm facility, expected to be Europe’s largest facility for capturing and storing biogenic carbon dioxide.
The government will roll out the funding over a maximum of 15 years, beginning with the first geological storage operations by Stockholm Exergi.
Positioned as Sweden’s leading district heating company, Stockholm Exergi is a trailblazer in the domain of sustainable and circular solutions for heating, electricity, and cooling.
Co-owned by the city of Stockholm and a group of European pension funds, the company has set its ambitions on becoming the largest provider of permanent carbon dioxide removals in the European Union and even the world.
Bioenergy with Carbon Capture and Storage (BECCS) is considered a key technology in reaching net-zero and climate goals. This method captures biogenic CO2 emissions before they reach the atmosphere, converting them into liquid form and storing them permanently in the bedrock.
In a January 2020 report issued by a Swedish parliamentary committee and commissioned by the government, BECCS is recognized as one of the measures that will help the country reach its target of negative greenhouse gas emissions after 2045.
Acknowledging the urgent need for carbon removal advancements, Stockholm Exergi intends to construct its Beccs Stockholm facility at their existing bioenergy-generation plant in Värtan, a site that produces sustainable electricity and district heating from forest residues.
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According to Stockholm Energy’s projections, the BECCS system will be able to permanently remove 800,000 tons of carbon dioxide per year, an amount that surpasses the annual road traffic emissions in Stockholm.
Anders Egelrud, CEO of Stockholm Exergi, commented that this long-awaited announcement is the result of the company’s dedicated efforts.
He stated, “The government’s investment in BECCS, together with private financing from climate-ambitious companies, mark the beginning of a new green industry.“
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