Final Investment Decision - Stockholm Exergi moves ahead with world's first large-scale BECCS using Capsol's carbon capture technology

27 Mar 2025 15:48 CET

The world's first large-scale BECCS (bioenergy with carbon capture and storage)
project, deploying Capsol's capture technology, is now moving into construction
as Stockholm Exergi has made a final investment decision (FID). The facility is
scheduled to begin operations in 2028, permanently removing 800,000 tonnes of
CO2 annually while setting a precedent for negative emissions projects
worldwide.

[image]

Image by Stockholm Exergi

"This breakthrough for BECCS has been made possible by the combination of
Stockholm Exergi's well-orchestrated and pioneering efforts, a growing and well
-functioning market for carbon removal credit offtakes, our robust and cost
-efficient carbon capture technology and government support which other
countries are following closely," said Wendy Lam, CEO of Capsol Technologies.

As the Stockholm Exergi project progressed towards today's milestone, Capsol
experienced increasing industry interest in its CapsolEoP® (end-of-pipe)
solution as demonstrated by a growing project pipeline.

In total, Capsol has biomass and energy-from-waste (EfW) projects with a full
-scale potential of 7.8 million tonnes of CO2 in the mature pipeline,
translating into significant cost saving potential for plant owners and a Capsol
revenue opportunity of EUR 80-115 million based on target licensing revenues of
EUR 10-15 per tonne installed capacity.

"With the first FID for a large-scale project with Capsol's technology now in
place, this is set to further de-risk technology decisions and accelerate
commercial traction," said Wendy Lam.

Potential of more than 130 million tonnes

Stockholm Exergi's FID decision underscores the scalability of BECCS and
Capsol's role in unlocking the broader market potential. The project progress
coincides with positive policy developments in the US and EU, such as the recent
'Clean Industrial Deal,' which is expected to accelerate investment in CCS by
providing additional financial incentives for industrial emitters.

There are 146 biomass power and heat plants in Europe whose emissions are made
up of more than 50% biogenic CO2, totaling 50 million tonnes of biogenic CO2 per
year, according to CaptureMap. In North America, there are approximately 380
biomass power and heat plants emitting 30 million tonnes of biogenic CO2. For
EfW, an estimated 55 million tonnes of biogenic CO2 is emitted from 557 plants
in Europe and North America, with the majority of the EfW plants located in
Europe.

"Biomass and energy-from-waste are among the most mature industries for CCS,
driven by voluntary carbon removal markets, and we are pleased to see CapsolEoP®
emerging as a preferred technology. Our solution combines carbon capture with
heat recovery and generation, which results in significantly lower cost of
capture than many incumbent solutions in the market. For customers connected to
a district heating network, Capsol's solution can also enhance energy production
and revenues," said Lam.

CapsolEoP® has 20-60% lower levelized capture cost relative to amine-based
solutions, driven by energy efficiency. The technology also offers additional
benefits for biomass and EfW plants, including simplified integration as a
stand-alone unit and the use of the proven and safe Hot Potassium Carbonate
(HPC) solvent.

Technical validation

Biomass and energy-from-waste are two of Capsol Technologies' key market
segments, alongside cement and gas turbines.

Stockholm Exergi was the first company to select Capsol's solution for a large
-scale carbon capture project, signing a licensing agreement for CapsolEoP® in
July 2022. Since then, the project and Capsol's technology has been validated
through several significant milestones, including:

· An EU Innovation Fund grant of EUR 180 million in April 2022
· Environmental permit approval by Sweden's Land and Environmental Court in
April 2024
· An offtake agreement where Microsoft committed to acquiring 3.33 million
tonnes of permanent carbon removals in May 2024
· An offtake agreement where Frontier Group committed to acquiring carbon
removals worth USD 49 million in June 2024
· A commitment from The Swedish Energy Agency of SEK 20 billion (EUR 1.7
billion) in funding in January 2025
· An agreement with Northern Lights for transport and permanent storage of the
captured CO2

Further, Capsol entered into a project with Stockholm Exergi and other partners
in Q4 2024 to develop a bio-based solvent additive and optimize performance in
the operational phase.

First licensing revenues booked

For future projects of this scale, Capsol expects licensing revenues of EUR 8-12
million. As a first mover, Stockholm Exergi secured more favorable terms under
its early licensing agreement. Capsol booked full licensing revenues for this
project in Q4 2024, with payment expected in Q1 2025.

To receive Capsol's stock exchange and press releases via email, subscribe at
capsoltechnologies.com/investors

For further information, please contact:
Ingar Bergh
Chief Financial Officer, Capsol Technologies ASA
+47 926 20 330

ingar.bergh@capsoltechnologies.com

About Capsol Technologies

Capsol Technologies ASA is a carbon capture technology provider with a goal of
accelerating the world's transition to a net zero future. The technology
combines inherent heat recovery and generation in a stand-alone unit based on a
proven and safe solvent. Capsol's technology is licensed either directly to
customers or through industrial partners globally. The license fee is typically
triggered by FID and paid over the construction period. Capsol's key segments
include cement, biomass, energy-from-waste and gas turbines.

Capsol Technologies is listed on Euronext Oslo Børs (ticker: CAPSL). For more
information visit capsoltechnologies.com.

About BECCS

Bioenergy with carbon capture and storage (BECCS) captures and permanently
stores CO2 released from biomass combustion, resulting in negative emissions.
According to the UN's climate panel (IPCC), large-scale negative emissions are
essential to achieving global climate targets.

More information:
Access the news on Oslo Bors NewsWeb site