Växjö Energi is granted Support from the EU Commission for Carbon Capture
Växjö Energi has been selected as one of few actors in Northern Europe to receive expert support from the European Commission. The support will be provided by EIB Advisory through the Innovation Fund Project Development Assistance (PDA) programme. The support will help refine plans for carbon capture at the biomass fired combined heat and power plant in Växjö, Sweden.
Since 2020, Växjö Energi has been investigating and testing carbon capture technologies 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.
– We are proud that the European Commission has chosen Växjö Energi in competition with many strong applicants from across the EU. It is both a recognition and a driving force. With this support, we can further sharpen our project and develop a solid basis for a future investment decision, says Erik Tellgren, CEO of Växjö Energi.
The collaboration between Växjö Energi and EIB (European Investment Bank) will continue during the winter of 2025–2026 and includes technical and financial advisory services.
Creating Negative Emissions
Each tonne of stored biogenic carbon dioxide results in what is known as a negative emission of greenhouse gases, 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 contribute to reaching local and global climate goals.
Facts about Växjö Energi’s Carbon Capture Project – POSCLIMB
The objective of POSCLIMB is 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 contribute to 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.
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 has been completed, a decision can be made regarding a potential investment.
About the EIB Advisory Innovation Fund Project Development Assistance (PDA)
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 strengthening the EU competitiveness. The European Investment Bank implements the assistance on behalf of the European Commission.
For more information and interviews, please contact:
Julia Ahlrot, Head of Strategy and Public affairs, Växjö Energi, +46 470 77 51 35, julia.ahlrot@veab.se
Erik Tellgren, CEO, Växjö Energi, +46 470 77 51 01, erik.tellgren@veab.se