Facts: Carbon Dioxide Capture (CCS)
CCS is an abbreviation of the English “Carbon Capture and Storage” and stands for separation and storage of carbon dioxide.
Is useful mainly for large point sources, such as coal, oil and natural gas power plants and some large facilities in industry.
The carbon dioxide is compressed into liquid form, transported and stored permanently deep in the bedrock or on the seabed.
According to many assessors, large-scale CCS will be required to achieve the global climate goals.
Sources: NE, SGU
The bill means that the companies that install in so-called CCS technology and capture, transport and store carbon dioxide must be subject to a significantly lower energy tax for the electricity consumed in the facility. It concerns, for example, cogeneration plants, steel mills, the paper and pulp industry, cement factories and refineries, which account for a large part of Sweden’s emissions.
— A relevant comparison could be that as a plant, 500,000 tonnes of carbon dioxide is captured per year. Then this proposal means reduced energy tax costs in the order of SEK 170 million per year, says Romina Pourmokthari.
Crucial for zero emissions
According to the Minister of the Environment, the change in the law should make it easier for industries and other facilities that want to invest in CCS technology.
“This is part of our policy on the part of this government to pave the way for new technology that is of decisive importance for Sweden’s path to net zero emissions,” says Pourmokthari.
However, the CCS technology for capturing carbon dioxide is not yet available on a commercial scale in Sweden and is expensive to develop. According to the Energy Agency, the possibility of storing carbon dioxide on Swedish territory is also far into the future. But the environment minister says that the first commercial CCS facilities are expected to be commissioned in 2026 and that the tax reduction, which is supposed to come into force in 2024, will hopefully act as a driving force to speed up development.
— By making the operation of these facilities cheaper, we want to stimulate more people to invest in this and that the development of such facilities goes faster.
Commercial potential
She also believes that there are opportunities to reuse the captured carbon dioxide for commercial use.
— We see carbon dioxide as something harmful and evil, but how can you break up the carbon dioxide in different ways, for example with technology, and benefit from the constituents? It is a very lively discussion. The companies want to benefit from the carbon dioxide, says Pourmokthari.
The bill will now go to consultation.