Stockholm Exergi has signed a contract for carbon removals worth over 500 MSEK (USD 48,6M) for delivery during 2028-2030. The purchases will be facilitated by Frontier on behalf of buyers including Stripe, Alphabet, Shopify, Meta, JP Morgan Chase CO, H&M and McKinsey Sustainability.
– The agreement with Frontier and its prominent member companies is a very strong testimony
of the efficiency and sustainability of Stockholm Exergi’s BECCS project. With the determination of frontrunners like Frontier to kick-start the permanent removals industry, we are driving increased ambitions by pooling funding from private and public sources. The primary winner is the climate as we set our societies on track to meet the objectives of the Paris Agreement. The agreement with Frontier is an important milestone towards our final investment decision, says Anders Egelrud, CEO at Stockholm Exergi.
Frontier’s goal is to build a portfolio of companies working on carbon capture that together can reach climate-relevant scale in the coming decades. Frontier is an advance market commitment that effectively guarantee future demand in order to lower the risk for entrepreneurs to start carbon removal companies.
– Carbon removal is essential to balance out residual emissions once our target to reduce
emissions by at least 90% has been met. It is the only way we will be able to achieve and maintain net-zero. We were the first European company joining Frontier as a member, and working with Frontier allows us to develop a diverse portfolio of technologies and providers. This latest purchase of carbon dioxide removal from Stockholm Exergi and other recent purchases could catalyze similar retrofits on other existing bioenergy plants, creating an opportunity to responsibly scale carbon removal, says David Dahl, Head of Climate and Nature at H&M Group.
Stockholm Exergi’s goal is to make an investment decision for its full-scale BECCS-plant later in 2024.
BECCS
BECCS (Bio-energy with Carbon Capture and Storage) involves separating biogenic carbon dioxide from the combustion of biofuels from the flue gases and storing it permanently. As the captured carbon dioxide has previously been sequestered by the forest through photosynthesis, the concentration of carbon dioxide in the atmosphere is reduced, creating permanent carbon removals.
To limit global warming under the Paris Agreement, it is not enough to reduce carbon emissions alone. Permanent carbon removals are also needed. Stockholm Exergi’s new plant has great potential to create carbon removals. Once operational, it will capture 800 000 tonnes of biogenic carbon dioxide per year.
Permanent removals are the tool that can be used by actors wishing to offset emissions that cannot be reduced by other means or at reasonable cost, to reach Net Zero. A market for certificates, Carbon Removal Certificates (CRC), is emerging.
About Frontier
Frontier has facilitated purchases on behalf of Frontier founding members Stripe, Alphabet, Shopify, Meta, and McKinsey Sustainability, as well as Autodesk, H&M Group, JPMorgan Chase, and Workday. Also, Aledade, Canva, Samsara, Skyscanner, SKIMS, Wise, and Zendesk have purchased via Watershed’s partnership with Frontier.
