The construction industry is witnessing a seismic shift with the final investment decision (FID) by Stockholm Exergi to move forward with the world’s first large-scale Bioenergy with Carbon Capture and Storage (BECCS) project. This groundbreaking initiative, powered by Capsol Technologies’ innovative capture technology, is set to commence operations in 2028. The facility will permanently remove 800,000 tonnes of CO2 annually, setting a new benchmark for negative emissions projects globally.
Wendy Lam, CEO of Capsol Technologies, underscored the significance of this milestone, stating, “This breakthrough for BECCS has been made possible by the combination of Stockholm Exergi’s well-orchestrated and pioneering efforts, a growing and well-functioning market for carbon removal credit offtakes, our robust and cost-efficient carbon capture technology and government support which other countries are following closely.”
The project’s progression has sparked a surge in industry interest in Capsol’s CapsolEoP® (end-of-pipe) solution. The company now has a robust pipeline of biomass and energy-from-waste (EfW) projects with a full-scale potential of 7.8 million tonnes of CO2. This translates into significant cost-saving potential for plant owners and a revenue opportunity of EUR 80-115 million for Capsol, based on target licensing revenues of EUR 10-15 per tonne installed capacity.
The Stockholm Exergi project is not just a testament to technological prowess but also a harbinger of broader market potential. The decision underscores the scalability of BECCS and Capsol’s pivotal role in unlocking this potential. The project’s timeline coincides with positive policy developments in the US and EU, such as the recent ‘Clean Industrial Deal,’ which aims to accelerate investment in Carbon Capture and Storage (CCS) by providing additional financial incentives for industrial emitters.
The implications of this project are vast. There are 146 biomass power and heat plants in Europe and approximately 380 in North America, emitting a combined 80 million tonnes of biogenic CO2 annually. Additionally, 557 EfW plants in Europe and North America produce around 55 million tonnes of biogenic CO2. CapsolEoP® stands out as a preferred technology in this landscape, offering 20-60% lower levelized capture costs relative to amine-based solutions. This is driven by energy efficiency and the use of the proven and safe Hot Potassium Carbonate (HPC) solvent.
The project has already achieved several significant milestones, including an EU Innovation Fund grant of EUR 180 million, environmental permit approval by Sweden’s Land and Environmental Court, and offtake agreements with Microsoft and Frontier Group. These agreements underscore the growing market demand for carbon removal credits and the viability of Capsol’s technology.
For future projects of similar scale, Capsol anticipates licensing revenues of EUR 8-12 million. Stockholm Exergi, as a first mover, secured more favorable terms under its early licensing agreement. Capsol booked full licensing revenues for this project in Q4 2024, with payment expected in Q1 2025.
This development is a clarion call for the construction industry to embrace sustainable practices. The BECCS project exemplifies how innovation and sustainability can coexist, driving both environmental and economic benefits. As governments and industries worldwide grapple with climate change, initiatives like this offer a blueprint for a greener future. The construction sector, traditionally seen as a significant emitter, is now poised to become a leader in carbon reduction, setting a precedent for other industries to follow.
The success of the Stockholm Exergi project will likely catalyze a wave of similar initiatives, accelerating the adoption of BECCS and other carbon capture technologies. This shift is not just about reducing emissions but also about creating new economic opportunities and fostering a more sustainable global economy. As the world moves towards net-zero targets, the construction industry’s role in this transition will be pivotal. The BECCS project serves as a beacon, guiding the sector towards a future where sustainability and innovation are not just buzzwords but the foundation of every project.
