Sweden has allocated nearly $1 billion in financial support to three companies—Renova, SYSAV, and Öresundskraft—to capture and permanently store biogenic carbon dioxide, advancing the nation toward its long-term climate targets. Awarded through the second auction round of Sweden’s national bio-CCS support scheme, this funding will facilitate the permanent geological storage of 5.75 million tonnes of biogenic CO₂ over the designated support period.

The primary challenge addressed by this initiative is the early-stage development of the carbon dioxide removal market, which historically lacked sufficient financial mechanisms to incentivize large-scale capital investments in permanent storage infrastructure. Without dedicated economic support, industrial operators face high financial barriers in deploying complex capture and transport technologies required to achieve net-zero and negative emissions goals.

To solve this, the Swedish Energy Agency utilized a competitive reverse auction mechanism designed to direct public funding toward projects delivering negative emissions at the lowest support level per tonne of CO2. Under the terms of the grant, Renova, SYSAV, and Öresundskraft are required to commence geological storage no later than four years after the funding decision, utilizing the capital and operational disbursements to build out their respective capture and permanent storage supply chains.

As a result of this funding allocation, Renova will capture and store 890,000 tonnes of biogenic carbon dioxide, Öresundskraft will manage 1.26 million tonnes, and SYSAV will account for 3.6 million tonnes. This second auction builds upon the momentum of Sweden’s broader bio-CCS framework, reinforcing the country’s systematic approach to scaling negative emissions and supporting industrial decarbonization ahead of its 2045 net-zero target.