EU support for Stockholm Exergi's bio-CCS project
Press Release - Stockholm Exergi
The European Commission announced today that Stockholm Exergi's bio-CCS project - BECCS @ STHLM (bio-CCS - Bio Energy Carbon Capture and Storage) - has been selected for the final step in the selection process to receive support from the EU Innovation Fund. The project was selected for its potential to contribute to the transformation of the European energy sector and the potential to mitigate climate change.
With BECCS @ STHLM, Stockholm Exergi finances and builds a full-scale bio-CCS plant at the KVV8 biopower plant in Stockholm, which is planned to be operational in 2025. The bio-CCS plant will have a separation capacity of almost 800,000 tonnes of carbon dioxide per year. Contract negotiations for the transport and storage of captured carbon dioxide are ongoing and are expected to be completed well in advance of the project's investment decision planned for February 2023. The concept for storage is planned either in underwater geological aquifers or in former oil and gas fields in the North Sea.
- BECCS @ STHLM was the only bio-CCS project selected by the European Commission and we see this as a confirmation of the project's quality and importance and look forward to getting the final details in place. From Stockholm Exergi, I direct my thanks to the EU Innovation Fund for their willingness to provide support to BECCS @ STHLM, it is an important component for us to keep the schedule for the project. We look forward to continuing our important work to accelerate the expansion of negative emissions, which are recommended by the IPCC to make a decisive contribution to limiting global warming to 1.5 degrees, says Stockholm Exergi's CEO Anders Egelrud.
The final step that now takes place is called "Grant agreement preparation" during which the final details are reviewed and reviewed by the EU Innovation Fund before a final Grant agreement can be signed between Stockholm Exergi and CINEA.
The financing strategy for Stockholm Exergi's bio-CCS facility is currently based on a combination of EU funds (announced today), Swedish state aid (which is planned to be determined in 2022 through a so-called reverse auction) and income from the sale of negative emission rights. in a voluntary carbon dioxide market in the form of carbon sequestration certificates with permanent geological storage as well as services and products with zero or negative emissions. All these funding flows will be required to ensure the implementation of the project.
Stockholm Exergi's bio-CCS project is praised by the EU Commission for being energy efficient thanks to the waste heat being recovered from the process and used for district heating as well as the already established sustainable purchases of biofuel for the KVV8 biopower plant.
The bio-CCS plant at the bio-cogeneration plant in Värtan is Stockholm Exergi's first large-scale separation project for biogenic carbon dioxide. Based on the experience and results of this first project, the company expects to build additional CCS plants at other biopower plants and waste incineration plants after 2030, with the potential to reach a total capacity of up to 1.7 million tonnes of biogenic carbon dioxide by 2045 (based on current energy plants).
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