Saipem and Stockholm Exergi sign letter of intent for large-scale CO2 capture plant

Saipem, an industry leader in engineering, drilling, and construction, has partnered with Stockholm Exergi, the energy company of Stockholm’s district, to work on a significant CO2 capture plant. The project, to be located at Stockholm Exergi’s existing bio-cogeneration facility in the Swedish capital, forms part of a Letter of Intent signed by the two companies.

Saipem‘s role in this eco-centric venture will include overseeing the engineering, procurement, and construction activities for the carbon capture unit. The company will also manage CO2 storage and the ship loading systems for the transportation of CO2. The Letter of Intent also green-lights the initiation of restricted engineering-related activities while the key terms of the EPC Contract are being finalized, anticipated for Q3 2023.

This innovative venture, once complete, will enable the capture of 800,000 tonnes of biogenic carbon dioxide annually from the biomass-fueled Värtaverket power plant in Stockholm. The project aims to accomplish ‘negative emissions,’ a process of net removal of CO2 from the atmosphere.

Supported financially by the European Innovation Fund, Stockholm Exergi’s project will be among the first large-scale plants in Europe to generate “negative emissions”. This will lead to the issuing of Carbon Removal Certificates, establishing a new market for trade.

“We are pleased to be selected for this large-scale carbon capture project in Stockholm, and fully committed to support our client sustainability goals. 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,” said Fabrizio Botta, Chief Commercial Officer at Saipem.

Per Ytterberg, Director of Business Development at Stockholm Exergi and Head of its BECCS business project, stated, “The cooperation between us and Saipem is an important step towards the development of our large-scale plant for the separation and permanent storage of Bioenergy with Carbon Capture and Storage (BECCS). Stockholm Exergi is at the forefront of establishing BECCS and the goal is to construct one of Europe’s first and largest value chain for bio-energy carbon capture and storage.”