Prominent energy company Stockholm Exergi has secured over 20 billion krona ($2 billion) in funding from the Swedish Energy Agency to develop one of Europe’s largest bioenergy carbon capture and storage facilities.
According to a statement, the funds, awarded through a government-backed reverse auction, will be distributed over 15 years, contingent upon the commencement of carbon storage operations.
Once operational, the facility is expected to remove 800,000 metric tons of carbon dioxide from the atmosphere annually — more than the total emissions from Stockholm’s road traffic over the same period.
“This long-awaited announcement is the result of our dedicated efforts,” said Anders Egelrud, CEO of Stockholm Exergi, in the statement. “This support is essential for us to move forward with building Europe’s largest facility for capturing and storing biogenic carbon dioxide.”
An Urgent Need for Carbon Removal
The announcement comes amid growing recognition that limiting global warming to 1.5 degrees Celsius —or even staying below 2°C—will require large-scale carbon removal alongside emission reductions.
The Intergovernmental Panel on Climate Change has emphasized the need for BECCS in nearly all climate scenarios aligned with the Paris Agreement’s targets.
Sweden’s investment, coupled with private-sector contributions from climate-focused corporations, aims to establish a new green industry that could serve as a model for other European nations.
A Path to Net Zero
Egelrud described the funding as crucial in helping businesses achieve net-zero emissions. “This initiative paves the way for Sweden and the EU to achieve their long-term climate goals while providing companies with a real way to reach net zero through agreements with us to purchase permanent carbon removals.”
Stockholm Exergi’s next steps involve finalizing an investment decision by 2025 and starting carbon capture operations within three years. If successful, the project could set a precedent for large-scale BECCS deployment across Europe and beyond.
