The European Commission (EC) has approved a EUR 3 billion (USD 3.2 billion) state aid scheme proposed by Sweden aimed at promoting biogenic carbon capture and storage (CCS). The scheme will fund initiatives that capture and store carbon dioxide (CO2) emitted during the combustion or processing of biomass.
Under the scheme, funding will be allocated through competitive bidding, with beneficiaries committing to 15-year contracts for grants per tonne of biogenic CO2 permanently stored.
The first auction is slated for 2024, open to companies emitting biogenic CO2 in Sweden and those proposing projects capable of capturing and storing at least 50,000 tonnes annually.
Scheduled to operate until the end of 2028, the initiative seeks to bolster confidence in CCS technology, drive down associated costs, and cultivate a CCS value chain within the EU. It aligns with Sweden and the EU's 2050 climate neutrality goals, aiming to mitigate greenhouse gas emissions.
