On 12 June 2025, we broke ground on the establishment of Beccs Stockholm, which will be Europe’s largest facility for carbon capture. It was a historic day for us here at Stockholm Exergi, but also for Sweden and Europe. We are making our investment in a landscape characterised by greater uncertainty than has been the case for a very long time.

War, trade disputes, tensions and economic uncertainty are leading to a clear focus on security and preparedness issues in Sweden, within the EU and around the world. The war in Ukraine continues and at the time of writing, the US and Israel are attacking Iran and Iran is attacking several neighbouring countries, resulting in extensive human suffering. What the long-term consequences of this will be remains to be seen, but of course trade lines and commodity markets will also be affected. As a company, however, we are well prepared to fulfil our core mission, to provide our customers with heat.

become increasingly noticeable. Multiple negative climate events were recorded once again in 2025, both in Sweden and in the rest of the world – fires, floods, droughts and storms. Just as scientists have long been warning us, the climate is not only getting warmer, but also more unstable, with more extensive and faster variations.

Access to energy is becoming increasingly important for economic stability and national security, while electrification is increasing worldwide. Major AI investments, data centres, industrial transition and the electrification of transport systems require increased access to electricity, a need that is increasing in step with global developments.

The uncertain global situation and climate change mean that “business as usual” is simply not an option. We have to continue developing our ability to deliver safe and sustainable heating, cooling and electricity.

The decision to invest in large-scale carbon capture in Stockholm, BECCS, does not only mark the beginning of a new phase for Stockholm Exergi. It could also be the starting point for a whole new industry.

Since our Board of Directors made its investment decision at the end of March, the level of work has been intense. Changes have been made to the Energy Port. Many of the tanks located on the site have been demolished. The first concrete slab has been cast. Extensive work has been carried out on the foundations. We can already discern the outline of what will, in a few years’ time, be the site of a globally unique facility.

BECCS is a mega-project, with hundreds of employees and contractors working side by side. We have initiated collaborations with industry-leading companies in a range of different sectors. Like us, they view BECCS as a historic opportunity to develop technology and capabilities that could be of great significance for economic growth and for the climate.

We are doing something that nobody has done before. Leading the way is a challenge. However, we are convinced that Sweden and the Nordic region have unique conditions to become leaders in the fields of bioeconomy and carbon capture.

By making the right choices, we are laying the foundations for a future industry that may contribute to achieving climate goals, increasing Swedish competitiveness and strengthening Sweden’s preparedness. In these turbulent times we are living in, this is more important than ever.

Strong results

After a challenging 2024, we have improved our financial performance during the year. However, many of the challenges also remained during the past year. Relatively high fuel prices continued to represent a significant cost for us. Unusually high air temperatures in Stockholm in the late autumn resulted in lower than expected revenues from district heating sales. These are just a couple of examples.

Despite these challenges, we are able to present strong results. This is strengthening our competitiveness and giving us the conditions to invest in the future: in carbon capture, in digitalisation, in new business models and in new services for our customers. We have also continued to broaden our financial base and created conditions for long-term investments.

We are striving to achieve continuous improvements, and during the year we have adapted our offering to meet our customers’ needs by launching a number of new services and products. We have been working purposefully to strengthen both dialogue and customer relations. Customer satisfaction increased by just over 3 percentage points compared to the previous year. This is a testament to the work we have done. Things are moving in the right direction, but the work continues to further strengthen trust.

The strategic importance of district heating

Stockholm Exergi’s core mission is to provide Stockholm’s residents with heating and cooling all year round. In addition, power and district heating play a key role in climate change mitigation and in cities’ preparedness, not least by supplying electricity capacity locally in the city.

Power and district heating are prerequisites both for energy efficient carbon capture and permanent storage (CCS) and for supplying carbon dioxide as a raw material for the production of e.g. electrofuels, building materials and chemicals. This makes power and district heating key players in the development of Sweden’s bioeconomy and the foundation for a competitive new industry.

District heating’s robust infrastructure, local presence and ability to switch rapidly between different energy carriers provide a stable basis for underlying societal functions, even in times of crisis or war.

Despite its importance, district heating is often treated as a poor relation in the political debate. It is high time to provide district heating with the same conditions as other types of energy. It is not just a heating solution, but also a platform for circular flows, waste management and new climate solutions such as BECCS. This needs to be reflected in political decisions. This involves, for example: changing current building regulations that favour heat pumps over district heating, reviewing taxes and fees that unfairly disadvantage district heating compared to other energy types, as well as highlighting the crucial importance of district heating in relation to climate and energy security for our cities. It is time for our decision-makers to start viewing district heating as the industry it is and to make the decisions necessary for it to be able to grow.

Climate work continues

Total carbon dioxide emissions from our energy production decreased compared with 2024. At the same time, emissions per produced kWh of district heating increased. The explanation for this contradictory picture is that energy production was slightly lower than in the previous year, while the proportion of fossil materials in the residual waste increased – and is continuing to increase. Above all, the proportion of plastic is increasing in the waste that is submitted to us for energy recovery.

We are working together with waste management companies to reduce the amount of plastic that is incinerated, as well as reporting on the climate impact of the waste and recycling companies that engage our services, enabling them to set climate targets and monitor their progress. The new carbon dioxide fee that we introduced at the turn of the year is an example of how we are trying to steer waste producers towards increased recycling and lower emissions. We are also exploring carbon capture technologies at our waste-to-energy combined heat and power plants in order to eventually eliminate the remaining emissions

But that won’t be enough to take us all the way. The climate impact of waste treatment is currently calculated on the basis of the energy that is recovered, i.e. from district heating. That is a fundamental error. Greater responsibility must be placed higher up in the value chain, ultimately with those who put the plastic on the market, and not with us who, in the final analysis, are enabling effective energy recovery.

We are building the energy systems of the future

The world is facing a more complicated situation than has been the case for many years. Our role in Sweden’s preparedness efforts is becoming ever more significant. The importance of power and district heating in the work to mitigate climate change is becoming increasingly clear, and there is a growing need for local, sustainable heating and electricity production. This is presenting us with major challenges, but we are confident that we will succeed in meeting them. We are working every day to build the energy systems of the future. Safe, sustainable and competitive.

Anders Egelrud
Chief Executive Officer, Stockholm Exergi