The European Commission recently approved a €3 billion (US$3.21 billion) support plan for Swedish carbon capture and storage (CCS) to help Sweden reach its net zero carbon emissions target by 2045.

According to the plan, the funds will be used specifically to fund projects that can permanently capture and store CO2 emitted by biomass plants. These plants use renewable wood and other waste to produce fuel, electricity and heat. The move is intended to establish CCS as an effective means of combating climate change.

By funding this technology, the European Commission hopes to increase investor confidence, reduce the cost of future CCS technology, and further promote the development of the CCS industry throughout the EU.

Participating companies in the plan will be selected through a competitive bidding process, and the first auction is expected to be held later this year. To be eligible for funding, companies must operate in Sweden and their biogenic CO2 (derived from organic matter) emissions can be captured and stored through projects at least 50,000 tons per year.

The selected companies will receive funding per ton of biogenic CO2 permanently stored under a 15-year contract. The funding amount will be adjusted according to the project's potential revenue, such as the proceeds from voluntary carbon removal certificates and any other public support the project receives.

According to the European Commission, the program will last until December 31, 2028. By capturing and storing biogenic CO2 on a large scale, this project is expected to significantly contribute to Sweden's ambitious goal of reducing greenhouse gas emissions by 85% by 2045.