The European Commission announced today that Stockholm Exergi’s project for negative emissions – BECCS@STHLM (Bio Energy Carbon Capture and Storage) – has advanced to the last step in the selection process to receive support from the European Innovation Fund. The project was selected based on its potential to transform the European energy industry and mitigate climate change.
Through BECCS@STHLM, Stockholm Exergi is funding and building a full-scale BECCS-plant connected to the existing biomass CHP (Combined Heat and Power) plant KVV8 in central Stockholm, expected to be operational in 2025. The BECCS facility will have a capture capacity of close to 800 000 tonnes of biogenic CO₂ per year. Contractual negotiations for transport and storage of the captured CO₂ are on-going and expected to be finalized in due time before the project’s FID (Final Investment Decision) in February 2023. The captured CO₂ will be permanently stored in sub-sea geological aquifers or in depleted oil and gas fields in the North Sea.
“BECCS@STHLM was the only BECCS project selected by the EU Commission, something we view as a very significant confirmation of the project’s quality and importance and look forward to getting the final details in place. On behalf of Stockholm Exergi I extend my thanks to the EU Innovation Fund for their support, a vital component of maintaining our project timeline. We look forward to continuing our important work to accelerate the deployment of negative emissions, as recommended by the IPCC, in order to decisively contribute to limiting global warming to 1.5°C, said Anders Egelrud, CEO of Stockholm Exergi.
The final step in the process, known as the Grant agreement preparation, is now taking place. In this step the last details are reviewed and examined by the European Innovation Fund before a final agreement can be signed between Stockholm Exergi and CINEA.
Stockholm Exergi’s current funding strategy for the initial BECCS plant is based on a combination of EU funds (as announced today), Swedish government aid (to be determined during 2022 through a so-called reversed auction) and revenues from selling negative emission rights to the voluntary carbon market in the form of carbon removal certificates with permanently geological storage as well as services and products with zero or negative emissions. All of these funding streams will be required, and additional, to ensure a successful project launch.
BECCS@STHLM has been praised by the European Commission for its outstanding energy efficiency, largely thanks to its ability to recover heat from the capture and liquefication processes and use it for district heating as well as its already established sustainable sourcing of biomass for the CHP plant KVV8.
The BECCS facility at KVV8 is Stockholm Exergi’s first large-scale biogenic carbon capture project. Based on the experience and successful outcome of this first project, the company plans to develop additional BECCS facilities at its other bio-CHP and waste incineration plants after 2030. The potential total capture capacity could therefore reach up to 1.7 million tonnes of biogenic CO₂ by 2045, based on current energy facilities.
ABOUT THE EU INNOVATION FUND
The EU Innovation Fund is one of the world’s largest funding programs for the demonstration of innovative low-carbon technologies. It will provide around EUR 20 billion of support over 2020-2030, aiming to bring industrial solutions that decarbonize Europe to the market and support its transition to climate neutrality. During the first round, a total of 311 projects applied for funds and 7 projects were selected to share the EUR 1.1 billion allocated in this first round. The allocation decision by the EU Commission is subject to the signing of a formal funding agreement between the two parties, which is expected to take place during the first quarter of 2022.