Image: Stockholm Exergi by Urban Design

Sweden's decision to fund Stockholm Exergi's carbon capture plant significantly de-risks the project, complementing offtake agreements for more than three million tons of carbon removal made in 2024 with Microsoft and Frontier, on behalf of Alphabet, Meta, JPMorgan Chase, and H&M Group, among others.

Today Stockholm Exergi's Värtaverket biomass-fired plant provides power, district heating, and cooling to 190,000 households in the Stockholm region. With the award by the Swedish government, the final investment decision (FID) for the BECCS project is expected to happen as soon as possible in 2025, initiating the construction of the carbon capture plant and associated infrastructure.

Technical validation

Stockholm Exergi was the first company to select Capsol Technologies as its technology supplier for a large-scale carbon capture project, signing a licensing agreement for CapsolEoP® (end-of-pipe) in July 2022. Since then, the robustness of 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 tons of permanent carbon removals in May 2024
• An offtake agreement where Frontier committed to acquiring carbon removals worth USD 49 million in June 2024

In parallel, Stockholm Exergi and Capsol have continuously developed the CapsolEoP® technology. To further enhance performance, Capsol recently entered into an R&D project with Stockholm Exergi, KTH Royal Institute of Technology and AirZyme to develop a bio-based promoter for accelerated CO₂ capture and release.

Significant BECCS potential

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

"The progress of Stockholm Exergi's BECCS project paves the way for other biomass-fired power plants across Europe and North America, where we experience increased interest in our technology. We are pleased to deepen our R&D collaboration with our partners to drive further performance improvements," said Wendy Lam, CEO of Capsol Technologies.

First licensing revenues in Q4 2024

The payment terms of the licensing agreement between Capsol Technologies and Stockholm Exergi were met by the end of 2024. Capsol expects to recognize these revenues in Q4 2024. As previously communicated, the agreement includes a discount to Capsol's current license pricing due to Stockholm Exergi's role as a first mover.

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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. 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.