SEK 20 billion to capture and store over 11 million tons of biogenic carbon dioxide
The first reverse auction within the new support scheme for investments in capture and storage of biogenic carbon dioxide, bio-CCS, has now been decided. Stockholm Exergi wins the auction, which covers full cost of the entire value chain for capture, transport and storage.
Through the decision of the Swedish Energy Agency, a significant step toward achieving negative emissions in Sweden has been taken. With bio-CCS technology, there is considerable potential to store large volumes of biogenic carbon dioxide annually.
" Bio-CCS is an important component of Sweden's strategy to achieve its climate goals. We have large potential for bio-CCS through good access to biomass and bio-based industry. State-aid is expected to ensure that solutions can be implemented more quickly," says Caroline Asserup, Acting Director General of the Swedish Energy Agency.
SEK 15 billion remain to be allocated
In April 2024 Sweden notified to the Commission of its plans to adopt a €3 billion (SEK 36 billion) scheme to support projects removing biogenic CO2 emissions through permanent CCS, and the first reverse auction opened in August 2024. Six companies applied for the state-aid and Stockholm Exergi was finally selected as the winner of the first auction. The winning project requested the lowest amount of public support per tonne of biogenic CO2 stored and fulfilled the conditions that had been set for the auction.
Stockholm Exergi will start capture and store biogenic carbon dioxide within three years. The support amount of just over 20 billion SEK will be paid out continuously over a maximum of 15 years, from the start of geological storage. The support can be used for both investment and operation.
"We will evaluate the results of the reverse auction, which was the first of its kind, and plan for additional auction rounds. We have about 15 billion SEK left to allocate," says Martin Flack, Acting Head of the Resource-Efficient Society Department at the Swedish Energy Agency.
Facts about Sweden’s Bio-CCS Initiative
These three steps; capture, transportation and storage, constitute the core elements of biogenic carbon dioxide, Bio-CCS. Carbon dioxide (CO2) is captured from emissions of burned biomass (organic material), of biogenic origin from, for example, various industrial processes or combustion plants that use biomass.
In 2024 Sweden notified to the Commission of its plans to adopt a €3 billion (SEK 36 billion) scheme to support projects removing biogenic CO2 emissions through permanent CCS. In July the same year the European Commission approved the Swedish state aid scheme in 2024.
Under the scheme, the aid will be awarded through a competitive bidding process, a reversed auction, with the first auction in 2024. During15 years, beneficiaries will receive a grant per tonne of biogenic CO2 that is permanently stored. The aid received will be adjusted taking into account possible revenues that might stem from the projects (e.g., thanks to voluntary carbon removal certificates), as well as other public support received for the same project.
The total maximum budget of the scheme is SEK 36 billion to be disbursed by the Swedish Energy Agency during the period 2026–2046.
