Tuesday, July 16, 2024
HomeAll NewsEU greenlights €3 billion Swedish aid scheme for CCS from biomass processing

EU greenlights €3 billion Swedish aid scheme for CCS from biomass processing

The European Commission (EC) has approved a €3 billion (SEK 36 billion) Swedish scheme under EU State aid rules aimed at supporting carbon capture and storage (CCS). This initiative targets the reduction of carbon dioxide emissions from biomass combustion or processing (biogenic CO2).

According to the EC, this measure aligns with Sweden’s climate goals and the EU’s strategic objectives outlined in the European Green Deal, particularly the goal of achieving climate neutrality by 2050.

The scheme seeks to promote CCS as an effective tool in combating climate change, with anticipated benefits including increased investor confidence in CCS technology, reduced future application costs, and the facilitation of a CCS value chain within the EU.

Under the scheme’s framework, financial support will be allocated through a competitive bidding process, with the first auction scheduled for 2024. Eligible participants must operate in Sweden, emit biogenic CO2, and undertake projects capable of capturing and storing at least 50,000 tonnes of biogenic CO2 annually.

Beneficiaries will receive grants per tonne of biogenic CO2 permanently stored, under contracts lasting up to 15 years. Adjustments to aid disbursements will consider potential project revenues (e.g., from voluntary carbon removal certificates) and other forms of public support received.

The scheme is set to continue until 31 December 2028. By enabling significant biogenic CO2 capture and storage, it aims to support Sweden’s target of reducing greenhouse gas emissions by 85% by 2045 compared to 1990 levels, while advancing the EU’s goal of achieving climate neutrality by 2050.

Margrethe Vestager, Executive Vice-President in charge of competition policy at the EC, remarked, “This €3 billion scheme will allow Sweden to capture and permanently store a substantial amount of carbon dioxide from biomass combustion or processing. It will contribute to Sweden and the EU reaching their ambitious goal of climate neutrality by 2050, while ensuring minimal distortions to competition.”

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