The European Investment Bank ( EIB ) has approved a €260 million ( US$285.39 million ) loan to Stockholm Exergi for the construction of Sweden's first large-scale bioenergy plant with carbon capture and storage ( CCS ).

Beccs Stockholm at Vartaverket is designed to capture up to 800,000 tonnes of carbon dioxide per year. It is expected to be fully operational in 2028.

The captured carbon dioxide will exceed the total emissions from Stockholm's road traffic every year. The technology is based on the separation, liquefaction and permanent storage of biogenic carbon dioxide from the combustion of biofuels, resulting in so-called negative emissions.

After capture, the carbon dioxide will be temporarily stored and then shipped to Norway, where it will be permanently stored in the bedrock under the North Sea. This is done in collaboration with the Northern Lights project, a joint venture of Equinor, Shell and TotalEnergies.

This is the first CCS project to be financed by the EIB and an important contribution to achieving the world's climate goals and establishing negative emissions as a new global industry. There is a consensus that global warming cannot be limited to 1.5 or below 2 degrees Celsius without negative emissions.

The technology also contributes to improved air quality in urban environments and strengthens Europe's leadership in the climate transition.

“With this initiative, Sweden shows that it is possible to combine technological leadership with concrete climate benefits,“ says EIB vice-president Thomas Östros. “By supporting Beccs Stockholm, we are taking an important step to enable negative emissions in Europe and globally. It is an example of how the EIB's climate mission is being implemented in practice.“