March 02, 2026 [Storage Terminals Magazine]- Soderenergi’s Board of Directors has decided to pause the company’s ongoing BECCS (Bioenergy with Carbon Capture and Storage) project, citing excessive risk exposure and insufficient financing.

Since 2020, Soderenergi has been evaluating the conditions for capturing and permanently storing biogenic carbon dioxide as part of its BECCS initiative. The project was entering an intensive development phase, supported by detailed technical, logistical and environmental analyses. However, progressing further would have required substantial investment.

Chief Executive Officer Robert Tingvall said the decision to pause the project was driven by the high level of risk and the absence of adequate financing. He noted that the necessary conditions were not in place to justify continued development and implementation.

Recent developments have highlighted several unresolved challenges. The voluntary carbon credit market in the Nordic region has not expanded at the pace required to underpin the business case, and the company’s assessment indicates that Sweden’s current support scheme would be insufficient to support the scale of investment needed.

As a result of the Board’s decision, ongoing work on the BECCS project will be discontinued and no new commitments will be made. The company will, however, continue to monitor developments in carbon capture and storage. Sweden’s extensive bio-based district heating sector is seen as offering long-term potential for building a carbon capture industry that could contribute to addressing global climate challenges.

Soderenergi will maintain its focus on delivering flexible and energy-efficient solutions, with climate and environmental performance remaining central priorities. The company is jointly owned by the municipalities of Södertälje, Huddinge and Botkyrka.

Boel Godner, Chair of Soderenergi’s Board of Directors and Chair of the Municipal Executive Board of Södertälje, said the municipality remains committed to its ambitious climate goals. However, she emphasised that decisions must be taken in an uncertain environment without exposing the municipality to excessive financial risk, adding that pausing the project at this stage was a responsible course of action.