In Sweden, municipal energy major Stockholm Exergi AB has announced that it has signed an agreement for permanent negative emissions worth just over SEK 500 million (≈US$ 48.6 million) for delivery from 2028 to 2030.
According to a statement, the purchase will be made by Frontier LLC and includes buyers such as Stripe, Alphabet, Shopify, Meta, JP Morgan Chase CO, H&M, and McKinsey Sustainability.
The agreement with Frontier and their prominent member companies shows that Stockholm Exergi’s BECCS project is both effective and sustainable. With forerunners like Frontier, we can jump-start the industry for permanent negative emissions and drive ambitions by gathering private and public funding. The climate is the main winner when, in this way, we contribute to getting society on the right track to meet the goals of the Paris Agreement. The agreement with Frontier is an important milestone on the way to our final investment decision, said Anders Egelrud, CEO of Stockholm Exergi.
Advance market commitment
Frontier is an “advance market commitment” (AMC) that aims to accelerate the development of carbon removal technologies by aggregating and guaranteeing future demand for carbon removals.
Frontier’s goal is to build a portfolio of companies working on carbon capture that together can reach a climate-relevant scale in the coming decades. Frontier is a market commitment that effectively pre-guarantees future demand to reduce the risk of entrepreneurs starting carbon capture businesses.
Carbon sequestration is essential to balance the remaining residual emissions when our goal of reducing emissions by at least 90 percent has been achieved. That is the only way we will be able to achieve and maintain net zero emissions. We were the first European company to become members of Frontier and working with Frontier allows us to develop a diversified portfolio of technicians and suppliers. This latest purchase of carbon capture from Stockholm Exergi and other purchases we have made recently can catalyze similar installations at other existing bioenergy plants, creating an opportunity to scale up carbon capture in a responsible way, said David Dahl, Head of Climate and Nature at H&M Group, a Frontier member company.
Stockholm Exergi’s goal is to make a final investment decision (FID for its full-scale bioenergy with carbon capture and storage (BECCS) plant later in 2024.
