Stockholm Exergi to Build One of the World’s Largest Carbon Capture Facilities

Insider Brief

• Stockholm Exergi will build one of the world’s largest bioenergy with carbon capture and storage (BECCS) facilities, investing $1.2 billion to remove 800,000 tons of biogenic CO₂ annually starting in 2028.
• The project, located near the Värtaverket power plant, will use Capsol Technologies’ carbon capture system and receive CO₂ storage services from Northern Lights; it has secured major backing from the EU Innovation Fund and private buyers including Microsoft and Frontier Group.
• The facility reflects rising public-private investment in carbon removal to meet EU climate goals and demonstrates growing confidence in negative emissions as a scalable climate tool.

Stockholm Exergi Launches Major BECCS Project in Sweden

STOCKHOLM—Stockholm Exergi is breaking ground on one of the world’s largest facilities to capture and permanently store carbon dioxide, a move that indicates growing investment in decarbonization as part of Europe’s climate strategy.

Construction of the SEK 13 billion ($1.2 billion) bioenergy with carbon capture and storage project will start immediately and is expected to begin operations in 2028, according to the company. Once complete, the facility will remove 800,000 tons of biogenic CO₂ annually—more than the annual road traffic emissions in the Swedish capital.

“We have worked purposefully for many years to make bio-CCS a reality, and today’s decision means that we are moving from plans to action,” said Anders Egelrud, CEO of Stockholm Exergi. “With this, we assume global leadership in the industry for permanent removals.”

What Is BECCS and How Does It Work?

According to Stockholm Exergi, Bio-CCS, also referred to as BECCS, removes carbon dioxide that is produced by burning biological material like wood. Because plants absorb CO₂ as they grow, capturing and storing the emissions from their combustion removes carbon from the atmosphere, producing what climate scientists call “negative emissions.”

The project, called Beccs Stockholm, will be built at the city’s energy port near the Värtaverket power plant, which already generates electricity and heat from wood waste. CO₂ will be captured before it escapes into the air, then transported to a permanent storage site in bedrock under the sea.

The project will deploy Capsol Technologies’ carbon capture solution, according to Caspsol Technologies.

“This breakthrough for BECCS has been made possible by the combination of Stockholm Exergi’s well-orchestrated and pioneering efforts, a growing and well-functioning market for carbon removal credit offtakes, our robust and cost-efficient carbon capture technology and government support which other countries are following closely,” said Wendy Lam, CEO of Capsol Technologies in a statement.

Stockholm Exergi’s project has received €180 million from the EU Innovation Fund, Capsol noted. There is also off-take commitments from Microsoft (3.33 million tons) and investment of about $50 million from Frontier Group, which includes Meta, Stripe, Alphabet, Shopify and McKinsey.

CO₂ Storage Managed by Northern Lights

The carbon capture technology itself is not new. It has been used in various industries since the 1970s. Stockholm Exergi has run a pilot plant since 2019 to demonstrate that the process is feasible at scale. The CO₂ will be stored by Northern Lights, a joint venture between Equinor, Shell, and TotalEnergies, which announced it would expand its transport and storage network to accommodate the Stockholm project.

The decision to proceed with the project follows years of planning and is made possible by a blend of public and private funding. The European Union Innovation Fund and the Swedish government have both committed support, while private companies will purchase “negative emission certificates” to help meet their own climate goals.