Engineering and construction specialist Saipem has received a notice to proceed with the EUR 600 million ($647.3 million) contract for a large-scale carbon dioxide (CO2) project in Sweden. The company said in a media release that it will implement the CO2 capture project at Stockholm Exergi’s existing bio-cogeneration plant.
Saipem said the contract entails detailed engineering, procurement, construction, and commissioning of the carbon capture, storage, and ship loading systems. These actions follow the successful conclusion of the initial engineering and procurement services carried out following the Letter of Intent announced on July 26, 2023.
Once the plant is operational, it will capture 800,000 tonnes of biogenic carbon dioxide each year from the biomass-fueled Värtaverket power plant in Stockholm, allowing for a net reduction of CO2 from the atmosphere.
Saipem stated that this contract allows it to play a part in executing one of the globe’s most significant large-scale carbon capture projects, reinforcing its role in promoting the decarbonization process in Europe.
Stockholm Exergi, which has obtained funding from the European Innovation Fund and the Swedish Energy Agency’s reverse auction for its project, will be among the first companies globally to develop a Bioenergy with Carbon Capture and Storage (BECCS) model, Saipem said. This will allow for the combination of decreased carbon dioxide emissions with “negative emissions,” accompanied by Carbon Removal Certificates that can be traded on the voluntary market, the contractor said.
In its media release, Stockholm Exergi said the investment decision marks a major milestone in a SEK 13 billion ($1.3 billion) project which is set to be operational in 2028.
“This is a historic moment for Stockholm Exergi and for the green transition. We have worked purposefully for many years to make bio-CCS a reality, and today’s decision means that we are moving from plans to action. With this, we assume global leadership in the industry for permanent removals”, Anders Egelrud, CEO of Stockholm Exergi, said.
Source: By Paul Anderson from Rigzone.com