Sweden's Växjö Energi will receive expert support from the European Commission, delivered by the European Investment Bank through the Innovation Fund Project Development Assistance (PDA) programme, for carbon capture plans at the company's Sandviksverket biomass combined heat and power (CHP) plant.
The Swedish municipal energy company Växjö Energi AB (VEAB) has announced that it has been selected as one of the few participants in Northern Europe to receive expert support from the European Commission. This support, to be delivered by the European Investment Bank's advisory service through the Innovation Fund Project Development Assistance (PDA) programme, will help refine carbon capture plans at the biomass combined heat and power plant in Växjö.
Since 2020, Växjö Energi has been researching and testing carbon capture technologies at its Sandviksverket biomass combined heat and power plant in Växjö.
Now, with the European Commission's support, the work is entering a new phase. The Innovation Fund Project Development Assistance provides access to international expertise in order to strengthen the project technically and financially in preparation for future investment.
The European Commission selected Växjö Energi from among many strong contenders from across the European Union. This is both a mark of recognition and a driving force. "With this support, Växjö Energi can develop its project further and build a solid foundation for a future investment decision," emphasised Växjö Energi chief executive Erik Tellgren.
Support for project development
The EIB Advisory Innovation Fund Project Development Assistance (PDA), implemented on behalf of the European Commission, aims to help selected high-quality projects progress from planning through to financing and implementation.
It also increases a project's readiness ahead of applying to the EU Innovation Fund – one of the European Union's principal funding programmes for climate investment, which strengthens EU competitiveness.
Växjö Energi and the EIB will continue working together over the winter of 2025-2026, with the collaboration covering technical and financial advisory services.
POSCLIMB – the first project of its kind
Every tonne of biogenic carbon dioxide (bioCO2) stored creates negative greenhouse gas (GHG) emissions, generating both environmental and economic value through carbon credits.
POSCLIMB aims to capture, transport and permanently store up to 200,000 tonnes of negative emissions a year, creating the first domestic bioenergy with carbon capture and storage (BECCS) value chain of its kind. POSCLIMB will combine existing and new technologies and work with partners across the value and logistics chain. The logistics chain is focused on minimal emissions, combining rail and ship transport from source to storage site. The negative emissions generated will be converted into credits and sold on the open market, strengthening the European bioeconomy.
Creating negative emissions
Växjö Energi has carried out a feasibility study, and the city's municipal council will decide in spring 2026 whether POSCLIMB should move on to the next phase of the project, which would involve detailed design work. Once the design phase is complete, a decision can be taken on a possible investment.
The municipality of Växjö has set itself 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 meet local and global climate targets. In the long term, BECCS will allow the Swedish state, businesses and organisations to offset remaining hard-to-abate fossil fuel emissions. Putting this kind of experience into practice could also prove useful for Latvian energy companies.