Two initiatives from Sweden are among the seven large-scale industrial decarbonization projects that received funding from the European Commission’s Innovation Fund. In this round of funding, over 1.1 billion EUR have been granted to support breakthrough technologies in energy-intensive industries, hydrogen, carbon capture, use and storage and renewables.
BECCS@STHLM led by Stockholm Exergi will create a full-scale Bio-Energy Carbon Capture and Storage facility at its existing heat and power biomass plant in Stockholm. The combination of the CO2 capture with heat recovery will make the process more efficient. BECCS@STHLM will capture and store large quantities of biogenic CO2 with the potential to avoid approximately 7.8 million tons of CO2 over the first 10 years of operation. The project will be a catalyst for net carbon removal, an important instrument to reach climate neutrality. “We look forward to continuing our important work to accelerate the deployment of negative emissions, as recommended by the IPCC, in order to decisively contribute to limiting global warming to 1.5°C”, says Anders Egelrud, CEO of Stockholm Exergi.
HYBRIT (Hydrogen Breakthrough Ironmaking Technology), a collaboration between steel company SSAB, Europe’s largest iron ore producer LKAB and energy company Vattenfall, aims to produce fossil-free steel by replacing coal-based blast furnaces with direct hydrogen-based reduction technology. HYBRIT will demonstrate a complete industrial value chain for hydrogen-based iron and steelmaking. The project will produce approximately 1.2 million tons of crude steel annually, representing 25% of Sweden’s production. This will reduce greenhouse gas emissions by 14.3 million tons CO2 over the first 10 years of operation. A new facility will be established for first-of-a-kind hydrogen-based direct reduction, with 500 MW of fossil-free electrolysis in Gällivare. Furthermore, two blast furnaces are replaced by an electric furnace in Oxelösund. HYBRIT will also show the viability of technologies needed to melt hydrogen-reduced iron into crude steel. The project will thus lead the way to a full energy transition of the ore-based steel production as access to renewable energy increases.
The EU Innovation Fund is one of the world’s largest funding programs for the demonstration of innovative low-carbon technologies. It will provide around EUR 20 billion of support over 2020-2030, aiming to bring industrial solutions that decarbonize Europe to the market and support its transition to climate neutrality. “Innovation is crucial to provide the solutions we need this decade to keep 1.5 degrees within reach. Together with sharp emissions reductions, innovation gives us a path towards the Paris Agreement” says Executive Vice-President Frans Timmermans.