The Swedish Energy Agency has unveiled a groundbreaking initiative to support Bioenergy with Carbon Capture and Storage (BECCS), aiming to reduce carbon emissions and promote sustainable energy practices. This ambitious programme promises to distribute up to SEK 36 billion (approximately $3.5 billion) over a 20-year period, from 2026 to 2046.
Objective and Mechanism
The primary objective of this initiative is to foster the capability of Swedish facilities to achieve negative carbon emissions by leveraging BECCS, also referred to as bioCCS. At its core, the programme is designed to support entities in developing and operationalizing large-scale projects that can effectively capture, transport, and geologically store biogenic carbon dioxide.
Dr Johanna Mossberg, who heads the Department for Resource Efficient Society at the Swedish Energy Agency, conveyed her enthusiasm about the programme’s potential impact on Sweden’s climate goals. “This initiative is a positive step towards Sweden’s climate ambitions. The financial incentives provided by the state ensure that we can put solutions into place more rapidly, encouraging further investment in the technology,” Mossberg remarked.
The funding mechanism employed for this support programme is a reverse auction. In this system, companies compete by bidding the lowest support requirement per tonne of carbon dioxide they can store. This strategic approach ensures that funds are allocated to those capable of achieving the task most cost-effectively. The support provided will cover both the investment and operational costs for the entire BECCS value chain.
Implementation Timeline and Requirements
Projects awarded through this auction are required to accomplish geological storage of biogenic carbon dioxide within three years of the decision, with a possibility of a two-year extension if necessary. The support will be dispersed over a 15-year period following the verification of the permanent storage of the carbon dioxide.
The Swedish Energy Agency emphasised the importance of the project’s timely implementation, stating that the allocated SEK 36 billion will be pivotal in accelerating the adoption of BECCS technologies across Sweden. This significant financial backing underscores the country’s commitment to reducing greenhouse gas emissions and promoting sustainable energy practices.
The submission period for proposals is currently open and will close on November 21, 2024. Interested entities are encouraged to prepare their bids, demonstrating not only their technical capabilities but also their readiness to meet the stringent timelines set out by the agency.
Broader Context
This initiative comes on the heels of the European Union’s approval of a €3 billion carbon capture aid package in Sweden, signalling robust support for carbon capture and storage technologies at both the national and continental levels. The BECCS technology has already shown dominance in the carbon dioxide removal market, with notable achievements such as recording 4.3 million tonnes of CO2 captured in the second quarter of 2024.
Overall, Sweden’s pioneering reverse auction approach for BECCS funding positions it as a leading nation in the fight against climate change, offering a roadmap for other countries aiming to adopt similar measures to reduce their carbon footprints.
