Stockholm Exergi wins auction for government support for BECCS
Stockholm Exergi has been awarded support in the Swedish Energy Agency's reverse auction for BECCS. The approved support amounts to just over 20 billion SEK and will be disbursed continuously over a maximum of 15 years, starting from the commencement of geological storage. The support is an important part of the funding to enable the permanent removal of 800,000 tons of carbon dioxide per year, which is more than Stockholm's road traffic emits during the same period.
- This long-awaited announcement is the result of our dedicated efforts. This support is essential for us to move forward with building Europe’s largest facility for capturing and storing biogenic carbon dioxide” says Anders Egelrud, CEO of Stockholm Exergi.
Today there is a broad consensus that global warming cannot be limited to 1.5°C or below 2°C without carbon removals. Along with emission reductions and land-based carbon sinks, permanent carbon removals are needed to achieve the goals of the Paris Agreement and combat climate change. Almost all scenarios outlined by the UN Panel on Climate Change (IPCC) that align with the Paris Agreement require large volumes of BECCS.
- The government’s investment in BECCS together with private financing from climate-ambitious companies mark the beginning of a new green industry. 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.”, says Anders Egelrud.
Stockholm Exergi's next step in the process will be to reach an investment decision, which is expected to happen as soon as possible in 2025, paving the way to start capturing carbon dioxide within three years from now.
Contact:
Fredrik Persson
Head of Press
Mobile: +46 (0)73-063 81 71
E-mail: fredrik.persson@stockholmexergi.se
About BECCS and Beccs Stockholm
BECCS is a technology that captures biogenic carbon dioxide before it reaches the atmosphere. The carbon dioxide is converted into liquid form and permanently stored in the bedrock, creating permanent removals by removing carbon from the biogenic cycle. Permanent carbon removals can be used to balance emissions that are either unavoidable or very difficult to eliminate. It is an essential piece of the puzzle in order to reach the climate goals and net-zero emissions.
Stockholm Exergi’s planned facility, Beccs Stockholm, will be constructed at the existing bio power plant in Värtan. The plant already leverages forest residues to generate sustainable electricity and district heating, delivering safe and reliable power while keeping Stockholm’s residents warm through a 300-mile district heating network. By now adding the removal of the biogenic carbon dioxide, we create even more climate benefits.
About Stockholm Exergi
As Sweden's leading district heating company, Stockholm Exergi is a pioneer in sustainable and circular solutions for heating, electricity and cooling in Stockholm. With a history of developing innovative solutions, Stockholm Exergi is now working to become the largest provider of permanent carbon removals in the EU. Stockholm Exergi is owned by the City of Stockholm and a consortium of leading European pension funds (APG, Alecta, PGGM, Keva and AXA).
