Swedish municipal energy utility Växjö Energi AB (VEAB) has announced that it has been selected as one of the few actors in Northern Europe to receive expert support from the European Commission. To be provided by the European Investment Bank Advisory through the Innovation Fund Project Development Assistance (PDA) program, the support will help refine plans for carbon capture at the biomass-fired combined heat and power plant in Växjö.
Since 2020, Växjö Energi has been investigating and testing carbon capture technologies at its Sandviksverket biomass-fired combined heat and power (CHP) plant in Växjö.
The work now enters a new phase with the support of the European Commission. The PDA assistance provides access to international expertise to technically and financially strengthen the project in preparation for a future investment.
We are proud that the European Commission has chosen Växjö Energi in competition with many strong applicants from across the EU. It is both a recognition and a driving force. With this support, we can further sharpen our project and develop a solid basis for a future investment decision, said Erik Tellgren, CEO of Växjö Energi.
Support project progression
Implemented on behalf of the European Commission, the EIB Advisory Innovation Fund Project Development Assistance (PDA) support aims to help selected high-quality projects progress from planning to financing and implementation.
It also increases the project’s maturity ahead of an application to the EU Innovation Fund – one of the European Union’s key financing programmes for climate investments that strengthen the EU competitiveness.
The collaboration between Växjö Energi and EIB will continue during the winter of 2025–2026 and includes technical and financial advisory services.
POSCLIMB, a first-of-its-kind BECCS project
Each tonne of stored biogenic carbon dioxide (bioCO2) results in a negative emission of greenhouse gases (GHG), creating both environmental and economic value through carbon credits.
Dubbed POSCLIMB, the objective is to capture, transport, and permanently store up to 200,000 tonnes per annum of negative emissions by creating a first-of-a-kind bioenergy with carbon capture and storage (BECCS) inland value chain.
POSCLIMB will combine existing and emerging technologies and collaborate with counterparties throughout the value and logistics chain.
The logistics chain focuses on minimum emissions by combining train and ship transport from the point source to the storage site.
The negative emissions created will be turned into credits and sold to the open market, strengthening the European bioeconomy.
Creating negative emissions
A feasibility study has been conducted at Växjö Energi, and the Municipal Council will decide in the spring of 2026 if POSCLIMB should progress to the next project phase, which would involve detailed design work.
After the design phase has been completed, a decision can be made regarding a potential investment.
Växjö Municipality has set a target of becoming climate neutral by 2030. Växjö Energi plays a key role in this work, demonstrating how local bioenergy with carbon capture can contribute to reaching local and global climate goals.
In the long term, BECCS will enable the Swedish state, businesses and organisations to compensate for their remaining hard-to-abate fossil emissions.
