The European Investment Bank (EIB) has made a significant stride in combating climate change by granting a €260 million loan to Stockholm Exergi for the construction of Sweden’s first large-scale bioenergy plant with carbon capture and storage (BECCS). The facility, known as Beccs Stockholm, will be built in the Värtan port area and is expected to be fully operational by 2028.
Beccs Stockholm aims to capture up to 800,000 tonnes of carbon dioxide annually, a volume that exceeds the total emissions from all of Stockholm’s road traffic in a year. This ambitious project represents a crucial step towards Sweden's goal of achieving net zero emissions by 2045.
The technology behind Beccs Stockholm involves the separation, liquefaction, and permanent storage of biogenic carbon dioxide produced from the combustion of biofuels, which is essential for generating negative emissions. Once captured, the carbon dioxide will be temporarily stored before being transported to Norway for permanent storage in the bedrock beneath the North Sea, in partnership with the Northern Lights project, a collaboration involving Equinor, Shell, and TotalEnergies.
Thomas Östros, the EIB vice-president, emphasized the significance of this initiative, stating, "With this initiative, Sweden shows that it is possible to combine technological leadership with concrete climate benefits. By supporting Beccs Stockholm, we are taking an important step to enable negative emissions in Europe and globally. It is an example of how the EIB’s climate mission is being implemented in practice."
In addition to the EIB's investment, Stockholm Exergi has secured extensive agreements for future deliveries of negative emissions in the voluntary carbon market. Notably, the company has entered into a groundbreaking commitment with Microsoft, marking the largest single agreement of its kind globally.
Anders Egelrud, the CEO of Stockholm Exergi, expressed optimism about the collaboration, stating, "We have a very constructive and trusting dialogue with the EIB, and I look forward to continuing our cooperation. Their support enables the construction of one of the world’s largest facilities for the capture and permanent storage of biogenic carbon dioxide. Together, we are laying the foundation for a new, green and competitive Nordic industry – an industry that will play a crucial role in achieving the long-term climate goals."
Meanwhile, Skanska has been awarded a contract worth €89.5 million (SEK 990 million) to build the foundations for the new CCS plant. This project, part of Stockholm Exergi’s broader investment of €1.176 billion to enhance the CCS capacity of the existing Värtaverket biomass-fuelled heat and electricity plant, includes the construction of a quay for the CCS facility.
Skanska's work on the Beccs facility is set to commence immediately, with completion expected by 2028. The new CCS plant will capture and store approximately 800,000 tonnes of CO2 emitted from the flues of Värtaverket, which generates heat and electricity from forestry waste.
The captured carbon dioxide will undergo a mineralization process over time, ensuring its permanent storage in the seabed's bedrock. This innovative approach is seen as a vital tool for achieving climate goals, as consensus grows around the necessity of negative emissions to limit global warming to 1.5 to 2 degrees Celsius.
As the EIB continues to back high-impact projects, it has signed nearly €89 billion in new financing across more than 900 initiatives in 2024, demonstrating its commitment to climate action and environmental sustainability. Almost 60% of the EIB Group’s annual financing directly supports projects aimed at mitigating climate change and fostering a healthier environment.
Stockholm Exergi, owned by the City of Stockholm and a consortium of leading European pension funds, is dedicated to providing resource-efficient solutions that secure the growing region's access to heating, electricity, cooling, and waste services. The company currently heats over 800,000 residents through its 300-mile long district heating network.
With the construction of Beccs Stockholm, Stockholm Exergi aims to pioneer negative emissions technology and contribute significantly to the global effort against climate change. The facility is expected to enhance air quality in urban environments while reinforcing Europe’s leadership in the climate transition.
In conclusion, the collaboration between the EIB, Stockholm Exergi, and Skanska represents a pivotal moment in the fight against climate change, combining technological innovation with practical solutions to achieve substantial reductions in carbon emissions.
