Summary sheet
The project will finance the construction of a Bio-Energy Carbon Capture and Storage (BECCS) facility in Stockholm.
The aim is to reduce CO2 emissions from electricity and heat generation, with positive climate and health externalities. As such, it supports the emission reduction targets of Sweden.
EIB financing will allow the promoter to develop a full-scale Bio Energy Carbon Capture and Storage (BECCS) facility in Stockholm. The project supports the climate targets of Sweden, which aim to achieve zero net emissions of greenhouse gases into the atmosphere by 2045, and negative emissions after that. The National Energy and Climate Plan of Sweden envisages BECCS as a complementary measure to emission reductions to reach country's climate targets.
The financing of this project will also contribute to Bank's lending priority objectives on energy as well as on climate action. The project will remove carbon from the atmosphere, with positive climate and health externalities. Moreover, the project will contribute to market and liquidity development from future domestic and European markets for negative emissions.
The Project has an excellent economic return because of negative CO2 emissions, broader social benefits of the project are confirmed by difference between economic and financial returns, equivalent to an excellent rating.
The capacity, its work practices and the organisational structure of the Promoter are considered appropriate for the proposed project.
The Bank's contribution to the project is supported by a combination of its additionality profile, tenor profile, flexible drawdown terms as well as crowding in other financiers, thereby facilitating the project's financing and its successful implementation.
The Project falls under Annex I of the Environmental Impact Assessment (EIA) Directive (2011/92/EU as amended by Directive 2014/52/EU) and an EIA was required. The EIA process has been conducted and the relevant report developed.
The promoter is a public undertaking and, therefore, procurement for the implementation of the programme has to be carried out in accordance with the relevant applicable national public procurement legislation, in line with Directive 2014/25/EU (Utilities Directive).
Documents
News & Stories
Inside the project
How and Why
Creating negative emissions
Why
- 280 million tonnes of CO2 must be captured by 2040, according to the European Commission.
- The Beccs Stockholm facility in central Stockholm will capture up to 800 000 tonnes of carbon dioxide annually, more than all the emissions from the city's road traffic each year.
- Stockholm Exergi will sell negative emissions to companies that want to offset their emissions output.
How
- The technology creates negative emissions by separating and liquefying biogenic carbon dioxide from the combustion of biofuels. Beccs Stockhom is one of the first facilities worldwide to implement this proven technology at this scale.
- The project is backed by public and private financing. Alongside EIB support, it has secured €180 million from the EU Innovation Fund. Once the facility begins capturing carbon, it will also receive Swedish state support.
- The captured carbon dioxide will be shipped to Norway for permanent storage in the bedrock beneath the North Sea.
Sectors & Countries
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Story
Sweden builds large-scale bioenergy carbon capture facility
Sweden is constructing its first large bioenergy plant with carbon capture and storage technology, supported by a €260 million loan from the European Investment Bank. The Beccs Stockholm facility, located in central Stockholm, is expected to be fully operational by 2028.
It will contribute to the European Commission’s goal of capturing 280 million tonnes of CO₂ by 2040.
Stockholm Exergi
How it works
The process involves separating, liquefying and permanently storing biogenic carbon dioxide produced from burning biofuels. This creates negative emissions, meaning that the concentration of CO₂ in the atmosphere is reduced.
Financing and partnerships
The project combines public and private funding. In addition to the EIB loan, it has secured €180 million from the EU Innovation Fund and will benefit from Swedish state support once carbon capture begins.
A key part of the financing model is the sale of negative emissions to corporate buyers.
“The largest offtaker signed so far is Microsoft, which has committed to purchasing 500 000 tonnes of CO₂ in negative emissions annually for ten years,” says Maris Miglans, the European Investment Bank loan officer for the project. This arrangement allows Microsoft to offset part of its carbon footprint while providing Stockholm Exergi with revenue to sustain operations.
A first of Its kind
While carbon capture technology is proven, Beccs Stockholm is the first facility worldwide to implement it at this scale using a biomass-fired boiler.
“Stockholm Exergi are trailblazers,” says Miglans.
“Their experience will help us support similar projects in the future.”
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