The Swedish Energy Agency (Energimyndigheten) has opened its second reverse auction call, offering SEK 10.17 billion in investment and operational support for bio-energy with carbon capture and storage (bio-CCS). Under Sweden’s national climate strategy targeting net-zero greenhouse gas emissions by 2045 and subsequent negative emissions, this initiative incentivizes commercial operators generating biogenic carbon dioxide within Sweden to capture, transport, and permanently store it in geological formations. The application window runs through August 13, 2026, targeting permitted industrial and combustion facility operators across the country.

Developing functional Bio-CCS supply chains presents a significant economic hurdle due to high initial capital expenditures and ongoing operational costs associated with carbon capture, transport, and long-term geological storage. Without structured financial mechanisms, companies generating biogenic carbon dioxide lack the commercial framework required to justify long-term capital deployment. Furthermore, establishing negative-emission business models requires clear policy instruments to de-risk investment and guarantee long-term operational viability across complex, multi-stage logistics chains.

To resolve these financial barriers, Energimyndigheten implemented a competitive reverse auction framework to distribute both capital expenditure investment support and ongoing operational funding. Under the terms of the scheme, winning operators receive support payments for up to 15 years once carbon storage operations commence. Additionally, awarded projects must meet strict operational timelines, delivering permanently stored biogenic carbon dioxide within four years of receiving the funding decision.

This state-supported auction mechanism provides the financial certainty necessary to commercialize large-scale biogenic carbon capture in Sweden. By bridging the revenue gap for capture and storage operations, the program establishes a functioning value chain for negative emissions while encouraging industrial facilities to integrate carbon removal capabilities into their existing infrastructure.