Swedish Energy Agency grants SEK 9.3 billion to store 5.75 million tonnes of biogenic carbon dioxide
Sweden is taking another step towards negative emissions as the second auction under the government’s bio-CCS support scheme concludes. Renova, SYSAV and Öresundskraft have been granted a total of SEK 9.3 billion for the capture and permanent storage of biogenic carbon dioxide.
To reach its target of net-zero emissions by 2045 and achieve negative emissions thereafter, Sweden needs both major emission reductions and additional measures. Bio-CCS is a complementary measure that has the potential both to permanently store large volumes of biogenic carbon dioxide each year and to strengthen the competitiveness of Swedish industry.
"This is a step forward on Sweden’s path towards achieving its climate targets. By supporting the large-scale capture and permanent storage of biogenic carbon dioxide, we are not only building the capacity needed to address emissions. We are also creating business opportunities in a new industrial sector that strengthens Sweden’s competitiveness, says Caroline Asserup, Director General of the Swedish Energy Agency."
Three companies participated in the call for proposals
The Swedish Energy Agency has been tasked since 2021 with designing and implementing a support scheme to achieve negative emissions through bio-CCS. The second call for proposals closed on 13 August 2026, with a total of three companies applying for support.
The projects granted funding have met all the requirements set out in the call for proposals and have been assessed as having viable plans for the capture, transport and geological storage of biogenic carbon dioxide. The support has been allocated through a reverse auction, in which applicants compete to provide negative emissions at the lowest support level per tonne of carbon dioxide.
"The reverse auction enables public funding to be directed towards those projects that deliver the greatest possible climate benefit. Interest in the second auction demonstrates that there are companies willing to develop bio-CCS in Sweden, despite the market still being at an early stage of development, says Carl Mikael Strauss, Head of Unit at the Swedish Energy Agency."
A key technology for negative emissions
Bio-CCS involves capturing biogenic carbon dioxide, meaning carbon dioxide derived from biomass such as forest-based feedstock, from industrial processes or energy facilities. The carbon dioxide is then transported and permanently stored in geological formations. As it was previously removed from the atmosphere through the growth of biomass, the process can generate negative emissions.
Renova, Öresundskraft and SYSAV are required to commence the geological storage of biogenic carbon dioxide no later than four years after the funding decision. Renova plans to capture and store a total of 890,000 tonnes of biogenic carbon dioxide during the support period. The corresponding figure for Öresundskraft is 1.26 million tonnes, while SYSAV plans to store 3.6 million tonnes.
The total funding granted amounts to SEK 9.3 billion and will be disbursed throughout the support period as geological storage activities commence. The funding may be used for both capital investments and operational expenditure.
Key facts about Sweden’s bio-CCS support scheme
Since 2021, the Swedish Energy Agency has been tasked by the Government with designing a support scheme for bio-CCS. The scheme was approved in 2024. Funding is allocated through a reverse auction mechanism, and successful applicants may use the support to cover both capital investment and operating costs in Swedish bio-CCS projects.
The Government has allocated SEK 30.7 billion to the support scheme through to 2046. In January 2025, Stockholm Exergi was granted SEK 20 billion through the first call for proposals under the scheme. The company plans to store more than 11 million tonnes of carbon dioxide during the support period.
Following the second call for proposals, approximately SEK 29.3 billion of the total SEK 30.7 billion funding envelope has now been allocated. The Swedish Energy Agency will monitor implementation and draw lessons from the two completed funding rounds.
