Image by Stockholm Exergi

The world’s first large-scale BECCS (bioenergy with carbon capture and storage) project, deploying Capsol’s capture technology, is now moving into construction as Stockholm Exergi has made a final investment decision (FID). The facility is scheduled to begin operations in 2028, permanently removing 800,000 tonnes of CO₂ annually while setting a precedent for negative emissions projects worldwide.

“This breakthrough for BECCS has been made possible by the combination of Stockholm Exergi’s well-orchestrated and pioneering efforts, a growing and well-functioning market for carbon removal credit offtakes, our robust and cost-efficient carbon capture technology and government support which other countries are following closely,” said Wendy Lam, CEO of Capsol Technologies.

As the Stockholm Exergi project progressed towards today’s milestone, Capsol experienced increasing industry interest in its CapsolEoP^® (end-of-pipe) solution as demonstrated by a growing project pipeline.

In total, Capsol has biomass and energy-from-waste (EfW) projects with a full-scale potential of 7.8 million tonnes of CO₂ in the mature pipeline, translating into significant cost saving potential for plant owners and a Capsol revenue opportunity of EUR 80-115 million based on target licensing revenues of EUR 10-15 per tonne installed capacity.

“With the first FID for a large-scale project with Capsol’s technology now in place, this is set to further de-risk technology decisions and accelerate commercial traction,” said Wendy Lam.

Potential of more than 130 million tonnes

Stockholm Exergi’s FID decision underscores the scalability of BECCS and Capsol’s role in unlocking the broader market potential. The project progress coincides with positive policy developments in the US and EU, such as the recent 'Clean Industrial Deal,' which is expected to accelerate investment in CCS by providing additional financial incentives for industrial emitters.

There are 146 biomass power and heat plants in Europe whose emissions are made up of more than 50% biogenic CO₂, totaling 50 million tonnes of biogenic CO₂ per year, according to CaptureMap. In North America, there are approximately 380 biomass power and heat plants emitting 30 million tonnes of biogenic CO₂. For EfW, an estimated 55 million tonnes of biogenic CO₂ is emitted from 557 plants in Europe and North America, with the majority of the EfW plants located in Europe.

“Biomass and energy-from-waste are among the most mature industries for CCS, driven by voluntary carbon removal markets, and we are pleased to see CapsolEoP^® emerging as a preferred technology. Our solution combines carbon capture with heat recovery and generation, which results in significantly lower cost of capture than many incumbent solutions in the market.  For customers connected to a district heating network, Capsol's solution can also enhance energy production and revenues,” said Lam.

CapsolEoP^® has 20-60% lower levelized capture cost relative to amine-based solutions, driven by energy efficiency. The technology also offers additional benefits for biomass and EfW plants, including simplified integration as a       stand-alone unit and the use of the proven and safe Hot Potassium Carbonate (HPC) solvent.

Technical validation

Biomass and energy-from-waste are two of Capsol Technologies' key market segments, alongside cement and gas turbines.

Stockholm Exergi was the first company to select Capsol’s solution for a large-scale carbon capture project, signing a licensing agreement for CapsolEoP^® in July 2022. Since then, the project and Capsol's technology has been validated through several significant milestones, including:

- An EU Innovation Fund grant of EUR 180 million in April 2022

- Environmental permit approval by Sweden's Land and Environmental Court in April 2024

- An offtake agreement where Microsoft committed to acquiring 3.33 million tonnes of permanent carbon removals in May 2024

- An offtake agreement where Frontier Group committed to acquiring carbon removals worth USD 49 million in June 2024

- A commitment from The Swedish Energy Agency of SEK 20 billion (EUR 1.7 billion) in funding in January 2025

- An agreement with Northern Lights for transport and permanent storage of the captured CO₂

Further, Capsol entered into a project with Stockholm Exergi and other partners in Q4 2024 to develop a bio-based solvent additive and optimize performance in the operational phase.

First licensing revenues booked

For future projects of this scale, Capsol expects licensing revenues of EUR 8-12 million. As a first mover, Stockholm Exergi secured more favorable terms under its early licensing agreement. Capsol booked full licensing revenues for this project in Q4 2024, with payment expected in Q1 2025.

For further information, please contact:
Ingar Bergh
Chief Financial Officer, Capsol Technologies ASA
+47 926 20 330
[email protected] 

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About Capsol Technologies

Capsol Technologies ASA is a carbon capture technology provider with a goal of accelerating the world’s transition to a net zero future. The technology combines inherent heat recovery and generation in a stand-alone unit based on a proven and safe solvent. Capsol’s technology is licensed either directly to customers or through industrial partners globally. The license fee is typically triggered by FID and paid over the construction period. Capsol’s key segments include cement, biomass, energy-from-waste and gas turbines.

Capsol Technologies is listed on Euronext Oslo Børs (ticker: CAPSL). For more information visit capsoltechnologies.com.

About BECCS

Bioenergy with carbon capture and storage (BECCS) captures and permanently stores CO₂ released from biomass combustion, resulting in negative emissions. According to the UN’s climate panel (IPCC), large-scale negative emissions are essential to achieving global climate targets.