NIB supporting Europe’s largest BECCS project
In Sweden, the Nordic Investment Bank (NIB) and Stockholm Exergi Holding AB have signed a 10-year loan to fund Europe’s largest bioenergy with carbon capture and storage (BECCS) project in Stockholm.
The rising demand for carbon removal credits and sustainable energy is driving companies to meet Paris Agreement targets.
Stockholm Exergi has secured a SEK 2 billion (≈ EUR 176 million) loan from NIB to support the construction of Europe’s largest BECCS facility.
Stockholm Exergi’s BECCS project, which recently reached a positive Final Investment Decision (FID), is expected to contribute SEK 480 million to Sweden’s GDP and support 560 jobs, with full-scale deployment potentially adding SEK 24 billion and 28,000 jobs across key industries.
The facility will be constructed at the existing biomass-fired combined heat and power (CHP) plant in the Värtan area of Stockholm.
Construction is set to begin in 2025, with the BECCS facility expected to be operational in 2028.
As part of Stockholm Exergi’s partnership with Northern Lights, the liquid carbon dioxide (LCO2) will be transported by ship to the Northern Lights underground storage facility in the North Sea.
Currently Europe’s largest of its kind, the BECCS project is set to capture 800,000 tonnes of biogenic carbon dioxide (bioCO2) annually, creating negative emissions through carbon dioxide removal from the biogenic cycle.
Stockholm’s ambition of becoming a carbon-neutral city is commendable. This project is proof that Sweden is taking its goal of net-zero emissions by 2045 and the Paris Agreement seriously through tangible action, said André Küüsvek, President and CEO of NIB.
Stockholm Exergi is the largest provider of district heating in the Stockholm region, providing heating for over 800,000 people in and around Stockholm.
The company is 50 percent owned by the City of Stockholm and 50 percent by Ankhiale, a consortium of European institutional investors – APG, Alecta, PGGM, Keva, and AXA IM Alts.
Our close and constructive partnership with the NIB enables us to turn our ambition for permanent carbon removals into reality. With their support, we are now commencing construction of one of the world’s largest facilities for capture and permanent storage of biogenic carbon dioxide – a milestone that will help both Sweden and Europe reach their long-term climate goals. At the same time, we are building a new, competitive European industry that will generate green growth and jobs, said Anders Egelrud, CEO of Stockholm Exergi.
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