The Swedish Energy Agency has initiated the first tender call in Sweden for its new support program for Bioenergy with Carbon Capture and Storage (BECCS) through a reverse auction.
This initiative aims to distribute up to SEK 36 billion (approximately $3.5 billion) between 2026 and 2046.
The support is intended for Swedish entities operating facilities capable of achieving negative carbon emissions through BECCS, also known as bioCCS.
Dr Johanna Mossberg, Head of the Department for Resource Efficient Society at the Swedish Energy Agency, expressed optimism about the positive impact of this initiative on the nation’s climate ambitions.
“This is positive for Sweden’s climate goals, supporting transition and technology development. There are now financial incentives for large-scale separation, transport, and geological storage of carbon dioxide of biogenic origin. State support means that the solutions can be put in place faster and the hope is that more people will invest in the technology,” Mossberg said.
Reverse Auction Mechanism
The support funds will be allocated through a reverse auction process. Companies offering the lowest support requirement per tonne of stored carbon dioxide, while demonstrating their capability in separating, transporting, and geologically storing biogenic carbon dioxide from renewable sources, will be awarded the auction.
The support is provided over a 15-year period following the permanent storage of biogenic carbon dioxide.
The granted support will cover both investment and operating costs across the entire BECCS value chain.
Relevant: EU Approves €3B Carbon Capture Aid In Sweden
Supported projects must achieve geological storage of biogenic carbon dioxide within three years of the support decision, with a potential two-year extension.
The Swedish Energy Agency, acting as the auctioneer, can distribute a total of SEK 36 billion (approximately $3.5 billion) between 2026 and 2046.
The submission window for proposals will close on November 21, 2024.
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