The European Commission has approved €3bn State Aid to Sweden to support carbon capture and storage (CCS) aimed at reducing biogenic CO2.
Biogenic CO2, released during the combustion or processing of biomass, is a major target for reducing emissions across the EU.
By capturing and storing substantial amounts of biogenic CO2, this initiative will aid Sweden in reducing its greenhouse gas emissions by 85% by 2045 compared to 1990 levels.
Additionally, it will support Sweden and the EU in reaching their goal of climate neutrality by 2050.
Margrethe Vestager, Executive Vice-President in charge of competition policy, commented: “This €3 billion scheme will enable Sweden to capture and permanently store a significant amount of carbon dioxide generated by biomass combustion or processing.
“It will help Sweden and the EU to achieve their ambitious target of climate neutrality by 2050 while ensuring that competition distortions are kept to the minimum.”
Biogenic CO2 explained
Biogenic CO2 refers to carbon dioxide that is produced by natural biological processes.
Unlike anthropogenic CO2, which is generated by human activities such as fossil fuel combustion and industrial processes, biogenic CO2 originates from the respiration of plants, animals, and microorganisms, as well as from the decomposition of organic matter.
This type of CO2 is a part of the Earth’s natural carbon cycle, wherein carbon is exchanged between the atmosphere, oceans, and terrestrial ecosystems.
Key sources of biogenic CO2 include the respiration of living organisms, the natural decay of plant and animal matter, forest fires, and the fermentation processes used in agriculture and waste management.
Understanding biogenic CO2 is crucial for accurate carbon accounting and climate modelling.
Advancing carbon capture and storage
The €3bn funding will support projects aimed at permanently capturing and storing biogenic CO2 emissions.
The goal is to establish carbon capture and storage as a viable climate change mitigation tool to enhance investor confidence, lower future costs, and develop a CCS value chain within the EU.
The scheme will distribute funds through a competitive bidding process, with the first auction slated for 2024. Eligible participants are companies operating in Sweden that emit biogenic CO2 and can capture and store at least 50,000 tonnes of it annually.
Selected projects will receive 15-year contracts, providing grants per tonne of biogenic CO2 permanently stored. The grants will be adjusted based on potential revenue from the projects, such as from voluntary carbon removal certificates and other public funding received.
This initiative will run until 31 December 2028.
