Växjö Energi has been selected as one of few actors in Northern Europe to receive expert support from the European Commission for its carbon capture project at a biomass-fired combined heat and power plant in Växjö, Sweden. The support will be provided by EIB Advisory through the Innovation Fund Project Development Assistance (PDA) programme.

Project Development and EU Support

Since 2020, Växjö Energi has been investigating and testing carbon capture technology at the Sandviksverket combined heat and power plant. The work now enters a new phase with the support of the European Commission. The PDA assistance provides access to international expertise to technically and financially strengthen the project in preparation for a future investment.

Erik Tellgren, CEO of Växjö Energi, stated that the company is proud that the European Commission has chosen Växjö Energi, despite competition from many strong applicants across the EU. He described it as both a recognition and a driving force, noting that with this support, they can further sharpen their project and develop a solid basis for a future investment decision.

The collaboration between Växjö Energi and the EIB (European Investment Bank) will continue during the winter of 2025–2026 and will include technical and financial advisory services.

POSCLIMB Project Details

The carbon capture project, called POSCLIMB, aims to capture, transport, and permanently store up to 200 kt per year of negative emissions by creating a first-of-a-kind Bio Energy Carbon Capture and Storage (BECCS) inland value chain to support the commitments of the Paris Agreement.

POSCLIMB will combine existing and emerging technologies and collaborate with counterparties throughout the value and logistics chain. The logistics chain focuses on minimum emissions by combining train and ship transport from the point source to the storage site. The negative emissions created will be turned into credits and sold to the open market, strengthening the European bio economy.

Environmental Impact and Climate Goals

Each tonne of stored biogenic carbon dioxide results in a negative greenhouse gas emission, creating both environmental and economic value through carbon credits. In the long term, Bio Energy Carbon Capture and Storage (BECCS) will enable the Swedish state, businesses and organisations to compensate for their remaining hard-to-abate fossil emissions.

Växjö Municipality has set the goal of becoming climate neutral by 2030. Växjö Energi plays a key role in this work, demonstrating how local bioenergy with carbon capture can help achieve local and global climate goals.

Project Timeline and Decision Process

A feasibility study has been carried out at Växjö Energi, and the Municipal Council will decide in the spring of 2026 whether the project should move on to the next phase, which would involve detailed design work. After the design phase is complete, a decision can be made on a potential investment.

The PDA support aims to help selected high-quality projects progress from planning to financing and implementation. It also increases the projects' maturity ahead of an application to the EU Innovation Fund, one of the European Union's key financing programmes for climate investments, thereby strengthening the EU's competitiveness. The European Investment Bank implements the assistance on behalf of the European Commission.

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