Stockholm Exergi Secures \$2 Billion for Landmark Bio-CCS Facility

Stockholm Exergi has obtained over SEK 20 billion (approximately \$1.9 billion USD) in funding from the Swedish Energy Agency’s reverse auction to develop a bioenergy with carbon capture and storage (bio-CCS) facility. The funding, spread over 15 years from the start of geological storage operations, will support the removal of 800,000 tons of carbon dioxide annually—equivalent to more than the emissions from Stockholm’s road traffic each year.

The planned facility, Beccs Stockholm, will be located at the Värtan bio-cogeneration plant, which already produces sustainable electricity and district heating using forest residues. The addition of biogenic carbon capture aims to enhance its climate benefits. The project’s investment decision is anticipated in 2025, with carbon capture operations expected to commence within three years.

Bio-CCS technology captures biogenic carbon dioxide before it can enter the atmosphere, converts it into liquid form, and stores it permanently in geological formations. This process generates “negative emissions” that can help offset unavoidable emissions. Meeting the Paris Agreement’s climate targets of limiting global warming to 1.5°C or below 2°C will require permanent negative emissions alongside reductions and land-based carbon sinks.

“There is now broad agreement that global warming cannot be limited to 1.5°C or below 2°C without negative emissions. Alongside emission reductions and land-based carbon sinks, geological carbon sinks are also needed to combat climate change,” said Anders Egelrud, CEO of Stockholm Exergi.

The bio-CCS initiative marks a pivotal development in Sweden’s transition to a green economy, combining government investment with private sector contributions. It offers companies a route to net-zero emissions through the purchase of permanent carbon offsets while aligning with Sweden and the EU’s climate objectives.

“The government’s investment in bio-CCS, together with private financing from climate-ambitious companies, means the starting point for a new green industry,” Egelrud added.