In Sweden, the Swedish Energy Agency has announced that it has opened the first call for tenders within the Agency's new support system for Bioenergy with Carbon Capture and Storage through reverse auction. A total of up to SEK 36 billion (≈ EUR 3.1 billion) can be distributed between 2026 and 2046.
The support is aimed at actors with facilities in Sweden that can contribute to negative emissions of carbon dioxide (CO2) through bioenergy with carbon capture and storage (BECCS or bioCCS).
This is positive for Sweden’s climate goals, supporting transition and technology development. There are now financial incentives for large-scale separation, transport, and geological storage of carbon dioxide of biogenic origin. State support means that the solutions can be put in place faster and the hope is that more people will invest in the technology, said Dr Johanna Mossberg, Head of Department for Resource Efficient Society at the Swedish Energy Agency. department at the Energy Agency.
Reverse auction
Funds from the support system will be distributed by reverse auction. Companies that can offer the service to separate, transport, and geologically store carbon dioxide from renewable sources and, at the same time, have the lowest need for support per tonne of carbon dioxide stored win the auction.
The support is paid out over 15 years when the biogenic carbon dioxide has been permanently stored.
Granted support will be permitted for investment- and operating costs along the entire BECCS value chain.
The project or projects granted support must be able to deliver geologically stored biogenic carbon dioxide no later than three years from the decision on support, with the possibility of a two-year extension.
The Swedish Energy Agency is the auctioneer and can distribute a total of SEK 36 billion (≈ EUR 3.1 billion) between 2026 and 2046.
The call for proposals closes on November 21, 2024.
