Sweden: EIB finances ground-breaking carbon capture plant in Stockholm

This article is published in association with European Investment Bank.

• Project to capture CO2 volumes corresponding to more than the emissions of all of Stockholm’s road traffic in one year
• This is EIB’s first carbon capture financing operation and part of climate strategy
• Investment contributes to Sweden’s goal of net zero emissions by 2045

The European Investment Bank (EIB) has granted a loan of €260 million to Stockholm Exergi for the construction of Sweden’s first large-scale bioenergy plant with carbon capture and storage (BECCS).

Beccs Stockholm, which will begin construction at Värtaverket, is expected to be fully operational in 2028 and is projected to capture up to 800,000 tonnes of carbon dioxide per year. The captured carbon dioxide corresponds to more than the total emissions from Stockholm’s road traffic during a year. The technology is based on the separation, liquefaction and permanent storage of biogenic carbon dioxide from the combustion of biofuels – resulting in so-called negative emissions.

After capture, the carbon dioxide will be temporarily stored and then shipped to Norway where it will be permanently stored in the bedrock under the North Sea. This is done in collaboration with the Northern Lights project, a joint venture between Equinor, Shell and TotalEnergies.

This is the first CCS project to be financed by the EIB and an important contribution to achieving the world’s climate goals and establishing negative emissions as a new global industry. There is currently a consensus that global warming cannot be limited to 1.5 or below 2 degrees Celsius without negative emissions. The technology also contributes to improved air quality in urban environments and strengthens Europe’s leadership in the climate transition.

“With this initiative, Sweden shows that it is possible to combine technological leadership with concrete climate benefits, said EIB vice-president Thomas Östros. “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.”

Stockholm Exergi has also signed extensive agreements for future deliveries of negative emissions in the voluntary carbon market, including a record-breaking commitment from Microsoft – the largest single agreement of its kind to date globally.

“We have a very constructive and trusting dialogue with the EIB, and I look forward to continuing our cooperation,” said Stockholm Exergi chief executive officer Anders Egelrud. “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.”

Background information  

EIB 

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

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Bio-CCS och Beccs Stockholm

Bio-CCS is a technology that captures biogenic carbon dioxide before it reaches the atmosphere and is then permanently stored in the bedrock, which creates negative emissions because the carbon dioxide is separated from the biogenic cycle. Permanent negative emissions are the tool that can be used to counteract emissions that are not possible or will be very difficult to avoid. It is a necessary piece of the puzzle to achieve the climate goals and net-zero emissions. 

Stockholm Exergi’s facility, Beccs Stockholm, will be built in the Energy Port in Värtan.  Värtaverket already produces sustainable heat and electricity from residual products from the forestry and sawmill industry, such as wood chips, branches and tops. By now adding capture and storage of the biogenic carbon dioxide, we create even more climate benefits.

Beccs Stockholm is made possible through a combination of support from the EU Innovation Fund, state aid and private purchases of certificates for negative emissions from companies with high climate ambitions.

Stockholm Exergi

Stockholm Exergi is the energy company of Stockholmers and with resource-efficient solutions, we secure the growing Stockholm region’s access to heating, electricity, cooling and waste services. We heat over 800,000 Stockholmers and our 300-mile long district heating network is the hub for the societal benefits that we create together with our customers and partners. Through Beccs Stockholm, we are pushing for negative emissions to become a reality. We are owned by the City of Stockholm and Ankhiale, a consortium of leading European pension funds (APG, PGGM, Alecta, Keva and AXA IM Alts), and have over 800 employees who work every day to reduce Stockholmers’ climate impact.