Swedish Energy Agency opens BECCS reverse auction

The Swedish Energy Agency has opened the first call for tenders in Sweden's state aid package for carbon capture and storage (CCS) from biomass through reverse auction.

Beneficiaries granted the support will be allowed to sell such CCS credits, but the "the credits will be deducted from the state aid to avoid overcompensation", the Swedish Energy Agency told Argus in an emailed reply on 28 August.

The call for proposals closes on 21 November 2024.

State aid will be granted to beneficiaries for 15 years, for both capital expenditure and operating expenses, starting from when the first tonne of captured biogenic CO2 is permanently stored and verified. Such projects must be able to deliver geologically stored biogenic carbon dioxide no later than three years from the decision on the support, with the possibility of a two-year extension.

The potential beneficiaries of the aid will be enterprises carrying out an activity in Sweden that emits biogenic CO2, and which implement biogenic CCS projects leading to negative CO2 emissions with a capacity to capture and store over 50,000 t/yr of biogenic CO2, the Swedish Energy Agency said.

The total budget of the state aid scheme, approved by the European Commission in early July, is €3bn ($3.2bn) for distribution in 2026-46, to be awarded through bidding by 31 December 2028.

By Marta Imarisio