Höganäs AB and Öresundskraft ink deal on carbon removals

Carbon removals are generated when biogenic carbon dioxide (bioCO₂) is captured and permanently stored, thereby removing CO₂ from the natural carbon cycle.

The agreement covers 7,000 tonnes of carbon removals per year, totalling 70,000 tonnes over the ten-year contract period.

For Öresundskraft, this is its first agreement with an industrial company and an important step in developing the Swedish carbon removal market.

This demonstrates that the market for carbon removals is beginning to take shape. Höganäs AB is well advanced in its efforts to reduce emissions and has a clear ambition to take responsibility for the emissions that remain. We are particularly pleased that this agreement brings together two strong companies from the same region in southern Sweden. We are proud that Höganäs AB has chosen to work with us and that we can play a part in their continued journey towards net zero, said Stefan Håkansson, CEO of Öresundskraft.

Path to net-zero emissions

The agreement is part of Höganäs’s work towards net-zero emissions. As a global leader in advanced ceramic and metal powders, the company’s emissions primarily stem from its manufacturing processes.

Höganäs has worked for several years to reduce emissions from its own operations and has also explored opportunities for carbon capture at its facilities.

The company aims to achieve net-zero emissions across its entire value chain by 2037.

Its priority is to continue reducing emissions from its own operations, while CCS and carbon removals can help address those that are difficult to eliminate through other measures.

We have made significant progress in reducing our emissions and are well on track to meet our climate targets. Carbon removals are an important complement for emissions that are difficult to eliminate, and the agreement with Öresundskraft is a concrete step in our continued climate efforts, said Henrik Ager, Group President and CEO of Höganäs AB.

Operational in 2029

Öresundskraft’s CCS facility at Filbornaverket is scheduled to be operational in 2029 and will capture approximately 200,000 tonnes of CO₂ per annum.

Around 45 percent of this will be bioCO₂ and can be sold as carbon removals through Carbon Removal Certificates (CRCs).

This enables companies to address residual emissions that are difficult to eliminate through other measures.

Through the agreement, Höganäs AB and Öresundskraft are taking another step towards establishing a market for permanent carbon removals, a market expected to play an important role in the transition to net-zero emissions.