APG, on behalf of its pension fund client ABP and together with its co-shareholders in Stockholm Exergi, has taken the final investment decision to proceed with the Bio-Energy with Carbon Capture and Storage (BECCS) project in the Swedish capital.
This decision by the shareholders clears the way for full-scale construction of one of Europe’s first commercial BECCS facilities, marking a significant milestone in the effort to deliver negative emissions at scale. Once operational, the facility will capture and permanently remove up to 800,000 tonnes of biogenic CO₂ per year, corresponding to more CO₂ than the city’s annual road traffic emissions. The captured carbon dioxide will be liquefied, and transported via vessels to the North Sea for permanent sequestration beneath the seabed, where it is trapped permanently and gradually mineralizes into stable rock, ensuring it cannot return to the atmosphere.
Milestone
Stockholm Exergi – the largest district heating and cooling provider in Sweden where APG holds an interest, together with PGGM, Alecta, Keva, AXA, and the City of Stockholm – sees the BECCS project as a cornerstone of its strategy to become climate positive. Arjan Reinders, Head of Infrastructure Europe at APG, said: “By delivering permanent, negative emissions at an impressive scale, Stockholm Exergi’s BECCS project represents exactly the kind of innovative climate solution we need for a net-zero future. It’s a powerful example of how investing in innovation can contribute to a cleaner and more sustainable world for generations to come.”
Carlo Maddalena, Senior Director at APG and Board member at Stockholm Exergi, added: “This project is an excellent fit with APG’s infrastructure strategy – it combines attractive long-term returns for our beneficiaries with a truly transformative responsible investment profile. It also stands out as one of APG’s most significant impact investments to date in the energy transition space. Stockholm Exergi’s BECCS facility will be at the core of the energy transition, creating one of the world’s first carbon-negative energy sources.”
Expertise
A range of global technology, construction, and climate leaders have been engaged to design and build the carbon capture installation, bringing world-class engineering and construction expertise to ensure the facility’s success. Meanwhile, Microsoft, Frontier and other leading institutions – through the voluntary carbon market initiative – have signed long-term agreements to purchase a substantial portion of the plant’s future carbon removal credits. These offtake partnerships with corporate climate leaders provide a strong revenue foundation for the project.
The BECCS project has also secured broad support from the financial community. More than ten international commercial lenders and development banks are participating in the financing of the facility, underscoring strong confidence in Stockholm Exergi’s innovative climate solution.
Read the full press release.
Published on:
27 March 2025