EIB grants EUR 260m loan to BECCS @ STHLM

The project known as BECCS @ STHLM will begin construction at Stockholm Exergi’s biomass-fired combined heat and power (CHP) plant Värtaverket in Stockholm and is expected to be fully operational in 2028.

At full capacity, the BECCS plant is projected to capture up to 800,000 tonnes of carbon dioxide (CO₂) per annum. The technology is based on the separation, liquefaction, and permanent storage of biogenic carbon dioxide (bioCO₂) from the combustion of biomass fuels, resulting in so-called negative emissions.

After capture, the carbon dioxide will be temporarily stored and then shipped to Norway, where it will be permanently stored in the bedrock under the North Sea.

This is done in collaboration with the Northern Lights project, a joint venture between oil, gas, and energy majors Equinor, Shell, and TotalEnergies.

First CCS project for EIB

This is the first carbon capture and storage (CCS) project to be financed by the EIB and an important contribution to achieving the world’s climate goals and establishing negative emissions as a new global industry.

There is a growing consensus that global warming cannot be limited to 1.5 or below 2 degrees Celsius without negative emissions. The technology also contributes to improved air quality in urban environments and strengthens Europe’s leadership in the climate transition.

With this initiative, Sweden shows that it is possible to combine technological leadership with concrete climate benefits. By supporting BECCS @ STHLM, we are taking an important step to enable negative emissions in Europe and globally. It is an example of how the EIB’s climate mission is being implemented in practice, said Thomas Östros, VP of EIB.

Stockholm Exergi has also signed extensive agreements for future deliveries of negative emissions in the voluntary carbon market, including a record-breaking commitment from Microsoft – the largest single agreement of its kind to date globally.

We have a very constructive and trusting dialogue with the EIB, and I look forward to continuing our cooperation. Their support enables the construction of one of the world’s largest facilities for the capture and permanent storage of biogenic carbon dioxide. Together, we are laying the foundation for a new, green and competitive Nordic industry – an industry that will play a crucial role in achieving the long-term climate goals, said Anders Egelrud, CEO of Stockholm Exergi.