Saipem has officially received a full notice to proceed from Stockholm Exergi, the energy company serving the Stockholm district, for the execution of a significant CO2 capture project in Sweden. This development follows the successful final investment decision and financial closure of the project and marks a major step in the decarbonization efforts within Europe.
Project Overview: Capturing CO2 from Biomass-Fueled Värtaverket Power Plant
Once operational, the project will enable the capture of 800,000 tonnes of biogenic carbon dioxide annually from the biomass-powered Värtaverket plant in Stockholm. This will contribute to a significant reduction of CO2 in the atmosphere, ultimately enabling net CO2 removal through the bioenergy process.
Bioenergy with Carbon Capture and Storage (BECCS) is a process that combines biomass energy production with carbon capture technology to achieve net negative CO₂ emissions. It works by burning biomass (such as wood or agricultural waste) to generate energy while capturing and storing the resulting CO₂ emissions underground or using them in industrial applications.
Since biomass absorbs CO₂ from the atmosphere during its growth, capturing and storing its emissions effectively removes CO₂ from the air, making BECCS a key technology in carbon reduction and climate change mitigation strategies (more details on the video below – courtesy of stockholmexergi.se)
The project’s completion will not only benefit Stockholm’s energy landscape but also serve as a model for large-scale carbon capture in the bioenergy sector, further advancing the goal of achieving climate neutrality.
Saipem's Contract with Stockholm Exergi
Through its involvement in this pioneering project, Saipem is reinforcing its critical role in facilitating the decarbonization pathway across Europe. This contract underscores the company’s strong position in the field of CO2 management, demonstrating its unique combination of engineering expertise and technological capabilities across the full CO2 value chain.
It is understood that these activities build on the positive completion of earlier engineering (FEED) and procurement work, which followed the Letter of Intent announced on July 26, 2023. On 27 March 2025, Stockholm Exergi announced that is has reached Final Investment Decision on the innovative BECCS project.
Subsequently, Saipem confirmed that is received full notice to proceed from Stockholm Exergi, which means it can kick off all of its construction activities and contractual obligations.
According to Saipem the contract is valued at approximately €600 million, includes the detailed engineering, procurement, construction, and commissioning (EPC Contract) of systems dedicated to carbon capture, CO2 storage, and ship loading.
Stockholm Exergi - BECCS Funding
Bioenergy with Carbon Capture and Storage (Bio-CCS) offers a cost-effective method to remove biogenic CO₂ from the atmosphere. However, due to the substantial investment required, financing this innovative project relies on a three-pillar approach:
- Government Support – Stockholm Exergi has secured funding through the Swedish Energy Agency’s reverse auction for bio-CCS. With approved support exceeding 20 billion SEK, these funds will be disbursed over a period of up to 15 years, beginning once geological storage is initiated.
- European Union Funding – Selected for its potential to transform Europe’s energy landscape and reduce climate change impact, the project has received financial backing from the EU Innovation Fund. The EU’s contribution amounts to €180 million, reinforcing the project’s role in the continent’s energy transition.
- Revenue from the Voluntary Market – A growing number of companies committed to achieving net-zero emissions are purchasing carbon credits to offset their emissions. This expanding market for negative emissions is expected to form the major revenue stream, ensuring the project’s long-term financial viability.
Related Project and News – Carbon Capture Projects
- Aker Solutions Secures EPC Contract for Northern Lights Phase 2 CCS Project in Norway
- Santos secures financing for Moomba CCS Project in South Australia
- Aker Solutions secures FEED contract for Celsio’s CCS Terminal in Oslo
- JERA and ExxonMobil Partner to Develop Low-Carbon Hydrogen and Ammonia Production Project
