Saipem to proceed with large-scale, heavily subsidised bioenergy carbon capture project in Sweden

Saipem has received a full notice to proceed for a large-scale CO₂ capture project at Stockholm Exergi’s existing bio-cogeneration plant in Sweden, after the successful financial closure of the project.

The contract is worth approximately 600 million euros (US$650 million) and entails the detailed engineering, procurement, construction and commissioning of the carbon capture, CO₂ storage, and ship loading systems.

Once operational, the plant is expected to capture 800,000 tonnes of biogenic carbon dioxide annually from the biomass-fueled Värtaverket power plant in Stockholm, enabling net removal of CO₂ from the atmosphere at great expense and uncertain point.

Stockholm Exergy, which has received financial support from the European Innovation Fund and the Swedish Energy Agency’s reverse auction with its project, will be one of the first companies in the world to develop a "bioenergy with carbon capture and storage" (BECCS) model.

This will enable the company to boast “negative emissions”, with carbon removal certificates that can be traded on the voluntary market.