Sweden – Stockholm Exergi signed a contract with Microsoft covering 3.33 million tonnes of permanent carbon removals from bio-energy with carbon capture and storage (BECCS) at Värtan, Stockholm. The deliveries of the carbon removal certificates to Microsoft are planned to start in 2028 and continue for a period of ten years.
The agreement with Microsoft is an important sept closer to a final investment decision in Q4 2024 on the BECCS project. Building on this announcement, Stockholm Exergi intends to seek complementary state aid and additional private carbon removal deals, both of which are necessary to reach financial close.
When in operation, Stockholm Exergi’s plant will permanently remove up to 800,000 tonnes of CO₂ from the atmosphere per year. The construction of the carbon capture unit, liquefaction and intermediate storage is planned to start 2025 and will be an addition to Stockholm Exergi’s existing biomass-based combined and heat power plant in Stockholm, in operation since 2016.
About the BECCS-facility
The biomass feedstock for the project will continue to be safeguarded to ensure sustainable management of forests, protection of sensitive areas, stable carbon stocks, and to ensure that feedstock is not sourced from roundwood that would otherwise be used for long-lived wood products. Permanent geological storage will take place in the Nordic region.
About Stockholm Exergi
As Sweden’s leading district heating company with a €700 million in turn-over, Stockholm Exergi pioneers sustainable and circular heating, electricity and cooling solutions in Stockholm, Sweden. Stockholm Exergi is owned by the City of Stockholm and a consortium of leading European pension funds (APG, Alecta, PGGM, Keva and AXA).
Photo: Stockholm Exergi
