Sweden-based energy company Stockholm Exergi has cleared Italian engineering firm Saipem to begin work on a large-scale carbon capture project at the Värtaverket biomass power plant in Stockholm.
The €600m contract spans engineering, procurement, construction, and commissioning of CO2 capture, storage, and ship-loading systems.
Once operational, the project is expected to capture 800,000 tonnes of biogenic CO2 a year, applying a bioenergy with carbon capture and storage (BECCS) approach.
BECCS is a carbon removal method that extracts CO2 from the atmosphere by capturing emissions from burning biomass and storing underground.
The project is supported with funding from the European Innovation Fund and Sweden’s reverse auction scheme via the Swedish Energy Agency. It is among the first major BECCS developments to move ahead in Europe. In time it is expected to generate tradable carbon removal certificates for the voluntary carbon market.
The follow-on contract comes after early-stage engineering and procurement activities initiated in 2023 after the signing of a letter of intent. Saipem said the project strengthens its position in CO2 management.
Stockholm Exergi has selected Norway-based CO2 transport and storage company Northern Lights as its partner for the shipment and permanent storage of the captured CO2.
Northern Lights is a joint venture between Equinor, Shell and TotalEnergies. It recently moved forward with the second phase of its CO2 transport and storage project, boosting capacity from 1.5 million to over 5 million tonnes of CO2 per year by 2028.
