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Svebio welcomes Commission’s approval of Swedish BECCS scheme

Svebio welcomes Commission’s approval of Swedish BECCS scheme
The Stockholm Exergi biomass-fired combined heat and power (CHP) plant at night (photo courtesy Martin Lidell).

On July 2, 2024, the European Commission announced the approval of Swedish state support for the capture, separation, and storage of biogenic carbon dioxide – bioenergy with carbon capture and storage (BECCS) or bio-CCS. In a statement, the Swedish Bioenergy Association (Svebio) says it welcomes the Commission's swift approval of the scheme. 

The Swedish government notified the European Commission of its SEK 36 billion (≈EUR 3 billion) reverse auction support scheme on April 9, 2024, and the Commission’s decision is an important step in reaching Sweden’s climate goals by 2045 and the EU’s goal of climate neutrality by 2050.

It also provides conditions for Swedish companies to become leaders in the field.

It is positive that the Commission’s announcement came so quickly and that the Swedish Energy Agency can now set up a system for reverse auctions. The SEK 36 billion to be distributed through reverse auctions up to and including 2046 will be needed because large investments are required to build full-scale bio-CCS facilities, which is why this announcement provides the necessary financial security for the companies, remarked Anna Törner, CEO of the Swedish Bioenergy Association (Svebio).

Swedish Energy Agency to hold reverse auctions

Anna Törner, CEO of the Swedish Bioenergy Association (Svebio).

According to the government’s decision, SEK 36 billion (≈ EUR 3 billion) will be distributed from 2026 through to 2046 to create negative emissions.

The support will be paid out over the 15 years and the Swedish Energy Agency has been appointed the auctioneer.

This means that the companies that can offer the service to separate, capture, transport, and geologically store carbon dioxide (CO2) from biogenic sources at the lowest cost per stored tonne of CO2, win the auction.

After the summer, the Swedish Energy Agency will open the first reverse auction call.

Svebio believes that it is not enough to reduce carbon dioxide emissions but you must supplement by capturing carbon dioxide and storing it permanently in the bedrock or converting it into fossil-free products. Many of our members in the district and cogeneration sector have shown great interest in bio-CCS and some have already made investment decisions. The announcement from the European Commission and the Swedish Energy Agency will lead to several people going ahead with their investment plans, Anna Törner said.

She added that Svebio also hopes to hear a positive signal soon from the Commission regarding the reintroduction of a tax exemption for biogas.

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