EC clears EUR 3bn of Swedish state aid for biogenic CCS

The European Commission (EC) has cleared a EUR-3-billion (USD 3.2bn) Swedish state aid scheme to support biogenic carbon capture and storage (CCS).

The scheme will support projects that capture and store carbon dioxide (CO2) generated by the combustion or processing of biomass. The aid will be distributed via a competitive bidding process as part of which beneficiaries will sign 15-year contracts for grants per tonne of biogenic carbon dioxide that is permanently stored. The first auction is expected in 2024. Participants can be companies that emit biogenic carbon dioxide in Sweden and companies proposing projects capable of capturing and storing at least 50,000 tonnes of biogenic carbon dioxide per year.

The scheme will run until the end of 2028.

The measure is expected to foster investor confidence in the CCS technology, reduce its costs and help develop a CCS value chain in the EU. It will support efforts to reduce greenhouse gas emissions, contributing to the 2050 climate neutrality ambitions of Sweden and the EU.

(EUR 1 = USD 1.075)

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