EU approves €3 billion for CO2 capture and storage in Sweden

The European Union approves €3 billion in financial support for the development of biogenic CO2 capture and storage in Sweden.

Share:

Captage stockage CO2 Suède

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The European Union recently approved Swedish state aid worth 3 billion euros (SEK 36 billion) to support the capture and storage of biogenic carbon dioxide (CCS) from the combustion or processing of biomass. This initiative is part of Sweden’s efforts to develop carbon capture and storage technologies aimed at reducing biogenic CO2 emissions.

Program objectives and procedures

Sweden has notified the European Commission of its intention to launch a financial support program for biogenic CO2 capture and storage projects. The aim is to make this technology viable and facilitate its industrial adoption. Funds will be allocated via a competitive auction process, the first of which is scheduled for 2024. The auctions will be open to companies operating in Sweden and emitting biogenic CO2, with projects capable of capturing and storing at least 50,000 tonnes of biogenic CO2 per year.
Beneficiaries will receive subsidies based on the tonnage of CO2 captured and permanently stored, adjusted according to the potential income generated by the projects and other public support received. The program will run until December 31, 2028.

Impact on business and the market

This initiative aims to increase investor confidence in CCS technologies, reduce future costs and develop a CCS value chain in Europe. The European Commission’s evaluation concluded that this program is necessary to encourage investment in CCS projects in Sweden. It has an incentive effect, as potential beneficiaries would not have made these investments without public support.
The impact on competition and trade within the EU is limited thanks to the design of the measure, which ensures that the amount of aid is kept to the minimum necessary. An ex-post evaluation will verify the effectiveness of the competitive auction process.

Assessment and Regulatory Framework

The Commission has assessed this program in accordance with EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU and the guidelines on state aid for climate, environmental and energy protection (CEEAG). These guidelines enable Member States to support measures aimed at reducing or eliminating CO2 emissions.
The Swedish program is aligned with the EU’s strategic objectives, including the targets set by the European Green Deal. By approving this measure, the European Commission is reaffirming its commitment to supporting innovative industrial projects while minimizing distortions of competition on the European market.
The approval of this €3 billion EU grant for Sweden marks a significant step forward in the development of biogenic CO2 capture and storage technologies. This financial support is crucial to encouraging investment in this sector, reducing costs and developing a robust CCS infrastructure. This strategic initiative is an example of the EU’s commitment to promoting advanced industrial solutions while ensuring minimal impact on competition and trade.

TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.
Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
A prudent limit of 1,460 GtCO2 for geologic storage reshapes the split between industrial abatement and net removals, with oil-scale injection needs and an onshore/offshore distribution that will define logistics, costs and liabilities.
Frontier Infrastructure Holdings drilled a 5,618-metre well in Wyoming, setting a national record and strengthening the Sweetwater Carbon Storage Hub’s potential for industrial carbon dioxide storage.
The Northern Lights project has injected its first volume of CO2 under the North Sea, marking an industrial milestone for carbon transport and storage in Europe.
Verra and S&P Global Commodity Insights join forces to build a next-generation registry aimed at strengthening carbon market integration and enhancing transaction transparency.
Singapore signs its first regional carbon credit agreement with Thailand, paving the way for new financial flows and stronger cooperation within ASEAN.
Eni sells nearly half of Eni CCUS Holding to GIP, consolidating a structure dedicated to carbon capture and storage projects across Europe.
Investors hold 28.9 million EUAs net long as of August 8, four-month record level. Prices stable around 71 euros despite divergent fundamentals.
The federal government is funding an Ottawa-based company’s project to design a CO2 capture unit adapted to cold climates and integrated into a shipping container.