Stockholm Exergi’s BECCS project receives €180 million in EU funding
STOCKHOLM, April 1, 2022 /PRNewswire/ — Stockholm Exergi plans to build Europe first large-scale negative emissions power plant, a project supported by the EU Innovation Fund. Today it was announced that the EU contribution to the project amounts to €180 million.
When completed, the BECCS plant will capture 800,000 tonnes of biogenic carbon dioxide each year. The facility will help Sweden and Swedish and international corporate goals to achieve net zero emissions.
The European Innovation Fund has chosen to support seven European projects that contribute in various ways to combating climate change through innovative technologies. The Stockholm Exergi project to establish a large-scale plant for the separation and permanent storage of biogenic carbon dioxide is the only one of the seven projects that deploys BECCS technology.
“The support from the European Innovation Fund is very important to us. It means that we can maintain our timetable for opening the factory on a large scale. The support also represents a clear recognition of the project, a recognition that is particularly important part of our work to be a catalyst for establishing a negative emissions market,” says CEO of Stockholm Exergi Anders Egelrud.
Carbon capture is being developed as a complement to Stockholm Exergi’s already existing bio-CHP plant in Hjorthagen in stockholm. In its research center, which opened in 2019, Stockholm Exergi was able to demonstrate the extent of the project’s innovation with very high levels of energy efficiency and sustainability. Tests show that it has been possible to capture nearly 90% of biogenic carbon dioxide at high energy efficiency levels through intensive heat recovery and reuse back to from Stockholm district heating network.
To secure funding for the BECCS Facility, Stockholm Exergi believes that three main streams of funding are needed, support from the European Innovation Fund being one of them. The other two sources are the Swedish state – via a so-called reverse auction, the details of which are to be decided in 2022 – and revenue from the sale of so-called carbon removal certificates (CRCs) on the voluntary carbon market. .
“We are working intensely to achieve full project funding and have several dialogues with companies looking to buy CRC to offset or neutralize their remaining emissions and become ‘net-zero’. Our goal is to secure deals with potential buyers of our final investment decision in 2023,” says Anders Egelrud.
ON STOCKHOLM EXERGI BECCS PROJECT
Stockholm Exergi is financing and constructing a large-scale BECCS plant at its KVV8 bio-CHP plant in stockholm. The BECCS plant will have a capacity to capture nearly 800,000 tonnes of carbon dioxide per year. To ensure that the entire value chain of the project is included in the initiative, it is necessary that agreements are signed regarding the transport and permanent storage of the carbon dioxide captured. These negotiations are ongoing and will be a key element of the preparatory work for the decision on the method of financing the project, scheduled for 2023.
ABOUT THE EUROPEAN INNOVATION FUND
The European Innovation Fund is one of the world’s largest funding programs for the demonstration of innovative technologies that help reduce carbon dioxide emissions. The objective of the fund is to bring industrial solutions to market between 2020 and 2030 to reduce carbon dioxide emissions in Europe and support its transition to climate neutrality. A total of 311 projects have applied for funding in this current round, and seven have been selected to share the €1.1 billion allocated.
For more information please contact:
Stockholm Exergi Media Service, 020-30 20 40
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SOURCE Stockholm Exergi