In Sweden, energy utility Stockholm Exergi AB has announced that its bioenergy with carbon capture and storage (BECCS) project "BECCS @ STHLM" has been selected by the European Commission 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 possibility of mitigating climate change.
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With BECCS @ STHLM, Stockholm Exergi is building and funding a full-scale BECSS plant at its Värtan KVV8 biomass-fired combined heat and power (CHP) plant Stockholm. Planned to be operational in 2025, the BECCS plant will have a capacity to capture almost 800 000 tonnes of carbon dioxide (CO2) per year.
Contract negotiations for the transport and storage of captured CO2 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 BECCS 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. On behalf of Stockholm Exergi, I am grateful 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, recommended by the IPCC as a decisive contribution to limiting global warming to 1.5 degrees, said Anders Egelrud, CEO at Stockholm Exergi.
The final step is called “Grant Agreement preparation” during which the final details are revised and reviewed bythe EU Innovation Fundbefore a final Grant Agreement can be signed between Stockholm Exergi and CINEA.
The allocation decision of the European Commission is conditional on the signing of a formal financing agreement between the two parties which is expected to take place during the first quarter of 2022.
Additional CCS potential
The financing strategy for Stockholm Exergi’s BECCS facility is currently based on a combination of EU funding, such as the EU Innovation Fund, Swedish state aid planned to be determined in 2022 through a so-called reverse auction, and income from the sale of negative emission rights in a voluntary CO2 market.
The latter is the form of carbon sequestration certificates with permanent geological storage as well as services and products with zero or negative emissions.
According to Stockholm Exergi, all these funding and revenue streams will be required to ensure the implementation of the project.
BECCS @ STHLM is Stockholm Exergi’s first large-scale separation project for biogenic CO2. Based on the experience and results of this first project, the company expects to build additional CCS plants at other biomass- and waste-fired CHP after 2030.
In total, the company estimates that with its current plant fleet, there is the potential to capture up to 1.7 million tonnes of biogenic CO2 by 2045.
