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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).