Stockholm Exergi plans to build Europe’s first large-scale negative emissions plant, supported by the EU Innovation Fund. In addition, the EU contribution amounts to EUR 180 million.
Once completed, the BECCS plant will capture 800,000 tons of biogenic carbon dioxide per year. In this case, the facility will contribute to the goals of Sweden and Swedish and international companies to achieve net zero emissions.
The EU Innovation Fund has decided to support seven projects in Europe that promote various ways of combating climate change with innovative technologies. Stockholm Exergi’s project to establish a large-scale plant for the separation and permanent storage of biogenic carbon dioxide is the only one of the seven projects that uses BECCS technology.
“The support from the EU Innovation Fund is very important to us. It means that we can maintain our plan to open the plant on a large scale. The support also represents a clear recognition of the project, a recognition that is especially important in our work to be a catalyst for establishing a negative emissions market,” says Stockholm Exergi CEO Anders Egelrud.
Carbon capture is being developed as a complement to Stockholm Exergi’s existing biocogeneration plant in Hjorthagen, Stockholm. At its research facility, Stockholm Exergi has been able to demonstrate the scope of the project’s innovation with very high levels of energy efficiency and sustainability.
Tests show that up to 90% of the carbon dioxide has been captured with high levels of energy efficiency. This process is possible due to extensive heat recovery and reuse towards Stockholm’s district heating network.
In order to secure financing for the BECCS plant, Stockholm Exergi believes that three main sources of funding are needed. The first is support from the EU Financing Fund, the second from the Swedish government. The last one corresponds to revenues from the sale of so-called Carbon Offset Certificates (CRCs) on the voluntary carbon market.
Stockholm Exergi’s BECCS Project
Stockholm Exergi is financing and building a large-scale BECCS plant at its KVV8 biocogeneration plant in Stockholm. The BECCS plant will have a capacity to capture almost 800,000 tons of carbon dioxide per year. To ensure that the entire value chain of the project is included in the initiative, agreements on the transportation and permanent storage of the captured carbon dioxide need to be signed. These negotiations are ongoing and will be a key aspect of the preparatory work for the decision on project financing, expected in 2023.
About the EU Innovation Fund
The EU Innovation Fund is one of the world’s largest funding programs for demonstrating innovative technologies that help reduce carbon dioxide emissions. The aim of the fund is to bring industrial solutions to market between 2020 and 2030 to reduce carbon dioxide emissions in Europe and support its transition to climate neutrality. A total of 311 projects applied for funding in this round, and seven were selected to share the €1.1 billion allocated.
Source: Stockholm Exergi