NIB supports Stockholm’s plan to become a carbon-neutral city

NIB and Stockholm Exergi Holding AB (Publ) have signed a 10-year loan to fund Europe’s largest bio energy carbon capture and storage project in Stockholm, Sweden.

Stockholm Exergi has secured a SEK 2 billion (approx. EUR 176 million) loan from NIB to support the construction of Europe’s largest Bio Energy Carbon Capture and Storage (Bio-CCS or BECCS) facility. Construction is set to begin in 2025, with the facility expected to be operational during 2028.

BECCS is a technology that captures biogenic carbon dioxide (CO₂) before it reaches the atmosphere. Through the process, the carbon dioxide is captured and converted into liquid form. As part of Stockholm Exergi’s partnership with Northern Lights, the liquid CO₂ is then transported by ship to the Northern Lights underground storage facility in the North Sea. This creates negative emissions through carbon dioxide separation from the biogenic cycle.

The BECCS project is set to capture 800,000 tons of carbon dioxide (CO₂) per year, which is more than Stockholm’s road traffic emits every year.

“Stockholm’s ambition of becoming a carbon-neutral city is commendable. This project is proof that Sweden is taking its goal of net-zero emissions by 2045 and the Paris Agreement seriously through tangible action,” says André Küüsvek, NIB President & CEO. 

“Our close and constructive partnership with the NIB enables us to turn our ambition for permanent carbon removals into reality. With their support, we are now commencing construction of one of the world’s largest facilities for capture and permanent storage of biogenic carbon dioxide – a milestone that will help both Sweden and Europe reach their long-term climate goals. At the same time, we are building a new, competitive European industry that will generate green growth and jobs,” says Anders Egelrud, CEO of Stockholm Exergi.

The rising demand for carbon removal credits and sustainable energy is driving companies to meet Paris Agreement targets. Stockholm Exergi’s BECCS project is expected to contribute SEK 480 million to Sweden’s GDP and support 560 jobs, with full-scale deployment (30 Mt) potentially adding SEK 24 billion and 28,000 jobs across key industries.

The facility will be constructed at the existing combined heat and power (CHP) biofuel-fired plant in the Värtan area of Stockholm.

Stockholm Exergi (SE) is the largest provider of district heating in the Stockholm region, and the company provides heating for over 800,000 people in and around Stockholm. The company is 50% owned by the City of Stockholm and 50% by Ankhiale, a consortium of European institutional investors (APG, Alecta, PGGM, Keva, and AXA IM Alts).

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies S&P Global Ratings and Moody’s.

For further information, please contact
Tiina Kuusela, Senior Banker, at +358 10 618 0241, tiina.kuusela@nib.int

Oliver Mølvang Hermansen, Associate Communications Officer, at +358 10 618 0225, oliver.hermansen@nib.int