A letter of intent (LOI) signed between engineering and construction business Saipem, and Stockholm Exergi, the district of Stockholm’s energy company, will see a large-scale CO2 capture plant being established at Stockholm Exergi’s existing bio-cogeneration plant, located in the country’s capital.

Saipem will be responsible for the engineering, procurement and construction of the carbon capture unit, the CO2 storage and the vessel loading systems for the transportation of the captured CO2. Furthermore, terms set out within the LOI enable the start of limited, engineering-related activities. It is anticipated that the main terms of the EPC contract will be signed in Q3 of 2023.

Once the construction of the carbon capture unit is complete, the facility will be capable of capturing 800,000 tons of biogenic carbon dioxide annually from the biomass-fueled Värtaverket power plant. This will enable a net removal of CO2 from the atmosphere.

Upon completion of the Stockholm Exergi project, the plant will be one of the first large-scale plants in Europe to generate negative emissions. This will result in Carbon Removal Certificates being issued which can subsequently be traded on the open market.

“We are pleased to be selected for this large-scale carbon capture project in Stockholm, and fully committed to support our client sustainability goals,” commented Fabrizio Botta, chief commercial officer, Saipem. “This project will enable Saipem to further consolidate its position in the decarbonization sector and expand its portfolio in the CCS segment, providing a fundamental contribution to the energy transition of Sweden and Europe.”