Stockholm Exergi wins first reverse auction for BECCS

In August 2024, the Swedish Energy Agency opened the first call for tenders within the Agency’s support system for Bioenergy with Carbon Capture and Storage (BECCS) through reverse auction.

A total of up to SEK 36 billion (≈ EUR 3.1 billion) can be distributed between 2026 and 2046. The winning actor or actors can use the support for investment and operating costs in Swedish BECCS projects.

BECCS is one of many pieces of the puzzle needed for Sweden to meet its climate goals. We have good conditions for BECCS through good access to biomass and bio-based industries. Government support means that solutions can be put in place faster, said Caroline Asserup, Acting Director General at the Swedish Energy Agency.

For Stockholm Exergi, the support is an important part of the funding to enable the permanent removal of 800,000 tonnes of biogenic carbon dioxide (CO₂) per year, which is more than Stockholm’s road traffic emits during the same period.

This long-awaited announcement is the result of our dedicated efforts. This support is essential for us to move forward with building Europe’s largest facility for capturing and storing biogenic carbon dioxide said Anders Egelrud, CEO of Stockholm Exergi.

Stockholm Exergi’s next step in the process will be to reach a final investment decision (FID) in 2025, paving the way to begin capturing CO₂ within three years from now.

The government’s investment in BECCS, together with private financing from climate-ambitious companies marks the beginning of a new green industry. This initiative paves the way for Sweden and the EU to achieve their long-term climate goals while providing companies with a real way to reach net zero through agreements with us to purchase permanent carbon removals, Anders Egelrud said.

SEK 15 billion left to distribute

According to the Swedish Energy Agency, six actors applied for support in the first reverse auction call.

Stockholm Exergi met all the requirements and was assessed to have a feasible implementation plan to permanently sequester over 11 million tonnes of CO₂ over the period.

We will analyze the outcome of the reverse auction, which was the first of its kind, draw lessons from it then plan for additional auction rounds. We have approximately SEK 15 billion (≈ EUR 1.3 billion) left to distribute, said Martin Flack, Acting Head of the Department for Resource-Efficient Society at the Swedish Energy Agency.