Stockholm Exergi makes FID on world’s first large-scale BECCS project

In Sweden, the world’s first large-scale BECCS (bioenergy with carbon capture and storage) project, deploying Capsol’s capture technology, is now moving into construction as Stockholm Exergi has made a final investment decision (FID). The facility is scheduled to begin operations in 2028, permanently removing 800,000 metric tons of CO2 annually while setting a precedent for negative emissions projects worldwide.

In total, Capsol has biomass and energy-from-waste (EfW) projects with a full-scale potential of 7.8 million tons of CO2 in the mature pipeline, translating into significant cost saving potential for plant owners and a Capsol revenue opportunity of EUR 80-115 million based on target licensing revenues of EUR 10-15 per tonne installed capacity.

Stockholm Exergi was the first company to select Capsol’s solution for a large-scale carbon capture project, signing a licensing agreement for CapsolEoP® in July 2022. Since then, the project and Capsol’s technology has been validated through several significant milestones, including:

·      An EU Innovation Fund grant of EUR 180 million in April 2022

·      Environmental permit approval by Sweden’s Land and Environmental Court in April 2024

·      An offtake agreement where Microsoft committed to acquiring 3.33 million tonnes of permanent carbon removals in May 2024

·      An offtake agreement where Frontier Group committed to acquiring carbon removals worth USD 49 million in June 2024

·      A commitment from The Swedish Energy Agency of SEK 20 billion (EUR 1.7 billion) in funding in January 2025

·      An agreement with Northern Lights for transport and permanent storage of the captured CO2

Further, Capsol entered into a project with Stockholm Exergi and other partners in Q4 2024 to develop a bio-based solvent additive and optimize performance in the operational phase.