EIB Funds Beccs Stockholm, Pioneering Negative Emissions Technology to Outpace Stockholm Traffic Emissions

EIB Funds Beccs Stockholm, Pioneering Negative Emissions Technology to Outpace Stockholm Traffic Emissions

(IN BRIEF) The European Investment Bank has granted a €260 million loan to Stockholm Exergi to construct Sweden’s first large-scale BECCS facility at Värtaverket, expected to be operational by 2028. The project, Beccs Stockholm, will capture up to 800,000 tonnes of CO₂ annually—exceeding the emissions of Stockholm’s road traffic. Captured CO₂ will be transported to Norway for permanent storage under the North Sea in partnership with the Northern Lights project. This marks the EIB’s inaugural CCS financing and plays a critical role in global efforts to achieve negative emissions, a necessity for limiting global warming to 1.5-2°C. The project will also improve urban air quality and bolster Europe’s climate leadership, while future negative emissions agreements, including a historic deal with Microsoft, underline its potential to transform the Nordic industry.

(PRESS RELEASE) LUXEMBOURG, 5-Apr-2025 — /EuropaWire/ — The European Investment Bank (EIB) has approved a €260 million loan to Stockholm Exergi for the development of Sweden’s first large-scale bioenergy plant with carbon capture and storage (BECCS). The project, known as Beccs Stockholm, will be constructed at Värtaverket and is expected to be fully operational by 2028. It is designed to capture up to 800,000 tonnes of carbon dioxide annually—an amount exceeding the total emissions produced by all road traffic in Stockholm over one year. This innovative technology separates, liquefies, and permanently stores biogenic CO₂ generated from burning biofuels, resulting in negative emissions.

Once captured, the carbon dioxide will be temporarily stored before being transported to Norway, where it will be permanently sequestered beneath the North Sea’s bedrock, in collaboration with the Northern Lights project—a joint venture involving Equinor, Shell, and TotalEnergies.

This project marks the first time the EIB has financed a carbon capture and storage (CCS) initiative and represents a significant step toward achieving the world’s climate objectives, particularly in establishing negative emissions as a global industry. Experts agree that limiting global warming to 1.5 or below 2 degrees Celsius will be unfeasible without such negative emissions. In addition to mitigating climate change, this technology is expected to improve urban air quality and reinforce Europe’s leadership in the climate transition.

EIB Vice-President Thomas Östros commented, “With this initiative, Sweden demonstrates that technological leadership can be combined with tangible climate benefits. Supporting Beccs Stockholm is a crucial step in enabling negative emissions in Europe and globally, and it exemplifies how the EIB’s climate mission is being implemented in practice.”

Stockholm Exergi CEO Anders Egelrud added, “We have a very constructive and trusting dialogue with the EIB, and I look forward to continuing our cooperation. Their support enables us to build one of the world’s largest facilities for capturing and permanently storing biogenic CO₂. Together, we are laying the foundation for a new, green, and competitive Nordic industry that will be critical for achieving our long-term climate goals.” In addition, Stockholm Exergi has secured extensive future negative emissions delivery agreements in the voluntary carbon market, including a record-setting commitment from Microsoft—the largest single agreement of its kind globally.

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

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Bio-CCS och Beccs Stockholm

Bio-CCS is a technology that captures biogenic carbon dioxide before it reaches the atmosphere and is then permanently stored in the bedrock, which creates negative emissions because the carbon dioxide is separated from the biogenic cycle. Permanent negative emissions are the tool that can be used to counteract emissions that are not possible or will be very difficult to avoid. It is a necessary piece of the puzzle to achieve the climate goals and net-zero emissions.

Stockholm Exergi’s facility, Beccs Stockholm, will be built in the Energy Port in Värtan.  Värtaverket already produces sustainable heat and electricity from residual products from the forestry and sawmill industry, such as wood chips, branches and tops. By now adding capture and storage of the biogenic carbon dioxide, we create even more climate benefits.

Beccs Stockholm is made possible through a combination of support from the EU Innovation Fund, state aid and private purchases of certificates for negative emissions from companies with high climate ambitions.

Stockholm Exergi

Stockholm Exergi is the energy company of Stockholmers and with resource-efficient solutions, we secure the growing Stockholm region’s access to heating, electricity, cooling and waste services. We heat over 800,000 Stockholmers and our 300-mile long district heating network is the hub for the societal benefits that we create together with our customers and partners. Through Beccs Stockholm, we are pushing for negative emissions to become a reality. We are owned by the City of Stockholm and Ankhiale, a consortium of leading European pension funds (APG, PGGM, Alecta, Keva and AXA IM Alts), and have over 800 employees who work every day to reduce Stockholmers’ climate impact.

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SOURCE: European Investment Bank