Sysav awarded SEK 6.3 billion in funding for carbon capture project

Sysav has been awarded SEK 6.3 billion in the Swedish Energy Agency's second reverse auction for bio-CCS. The funding marks an important milestone for SkyZero, Sysav's large-scale carbon capture project in Malmö, Sweden, and represents a significant step towards realising carbon capture and permanent storage at its waste-to-energy facility.

Sysav is one of three Swedish waste-to-energy operators awarded a combined SEK 9.3 billion in funding through the auction.

Sysav operates a waste-to-energy facility that processes residual waste and produces district heating and electricity. Through carbon capture and storage (CCS), the facility can also contribute to negative emissions, taking on a new role in the climate transition.

Waste-to-energy facilities have particular potential for CCS, as their flue gases contain both biogenic and fossil carbon dioxide. For every tonne of biogenic CO₂ captured and permanently stored, approximately one tonne of fossil CO₂ is also captured, including emissions from plastics in residual waste. This creates a dual climate benefit: generating negative emissions while preventing fossil emissions from reaching the atmosphere.

An important milestone for SkyZero

“This is very welcome news and an important step forward for both Sysav and the wider industry. Waste-to-energy already plays an essential role in society. With CCS, we can also significantly reduce emissions and generate permanent negative emissions on a large scale. This creates entirely new opportunities to contribute to Sweden's climate transition,” says Malin Dahlroth, CEO of Sysav.

The funding strengthens the financial conditions for SkyZero and represents a significant step towards a future investment decision. Work will continue on financing, supplier agreements and the commercial framework required to realise the project.

As more CCS facilities are developed, the conditions for building the expertise, partnerships and infrastructure required for large-scale carbon management are strengthened.

Contributing to climate targets and competitiveness

When biogenic carbon dioxide is captured and permanently stored, negative emissions are generated. These can be verified and converted into carbon removal credits. For companies with ambitious climate targets, such credits provide a way to address residual emissions after all reasonable emission reductions have been implemented.

As more CCS projects move towards realisation, opportunities also emerge to develop the market for permanent carbon removals and meet growing demand from businesses.

The funding awarded to Sysav covers the capture, transport and permanent storage of biogenic carbon dioxide over a 15-year period. Payments will be made in accordance with the auction terms and are linked to verified geological storage.