Vattenfall, the Swedish energy utility, has placed a significant carbon capture and storage (CCS) project on hold.
The company cited an immature market for carbon capture as the primary reason for halting the project, which was slated to begin operations in 2028.
The project aimed to capture up to 150,000 metric tons of CO2 annually from the Jordbro biomass plant for storage in the North Sea.
Less than a year after submitting the environmental permit application, Vattenfall announced the suspension of the large-scale BECCS (bioenergy with carbon capture and storage) project.
Vattenfall stated that while the project planned to capture biogenic CO2 from the Jordbro combined heat and power plant, the current market conditions are not conducive to its successful implementation due to significant uncertainties and a lack of economic viability.
The Swedish media outlet SVT initially reported the decision, which Vattenfall clarified was not a definitive termination. The company emphasized that the environmental application would remain active and that the project could be resumed if market conditions improve.
Past CCS Efforts and Challenges
Vattenfall has been exploring CO2 capture technologies at its Swedish combined heat and power plants since 2021. However, the company’s history with CCS projects dates back further.
In the late 2000s, Vattenfall invested billions of Swedish Kronor in capturing and storing CO2 from its coal-fired power plants.
However, to achieve its climate neutrality goals, the company opted to divest its coal-fired power plants, selling Nordjyllandsværket in 2015 and its German plants the following year.
Relevant: Sweden Launches BECCS Reverse Auction Call
In recent years, the EU and its member states have renewed their focus on CCS technology with increased support.
Denmark recently earmarked $4.1 billion (DKK 28.7 billion), while the Swedish government recently approved a $3.2 billion (SEK 36 billion) grant for carbon capture projects.
Despite these developments, Vattenfall has determined that the market for CCS is still not mature enough for the Jordbro project to proceed. The company had initially planned to store the captured CO2 likely at sea in the North Sea or potentially on land in Denmark.
Read more: EU Approves €3B Carbon Capture Aid In Sweden
