Unique funding for carbon capture – Billions from the EU to industry
The European Innovation Fund provides a new opportunity for energy-intensive industries with ambitions to become climate-neutral. This summer the fund starts financing carbon dioxide-reducing innovations.
– EU is investing billions, where 40 percent of the loan is written off. It is a unique opportunity for leading edge businesses,” says Magnus Andersson, finance expert at IMCG.
The European Innovation Fund is interested in energy-intensive industries that invest in renewable energy, energy storage or in carbon capture and subsequent storage. As an advisor to EU’s financing instruments, IMCG has a unique insight into what is required to access the Innovation Fund and has now begun working on creating financing plans for the industry.
Funding for Stockholm Exergi
The main energy company in the Swedish capital, Stockholm Exergi, is establishing a large carbon capture initiative at Värtaverket in Stockholm. When the the facility is fully developed, it has the potential to capture 800,000 tonnes of carbon dioxide a year, which is as much as the traffic in Stockholm emits in a year. IMCG, together with the social and industrial development company Midroc, develops financing solutions for the initiative.
– Stockholm Exergi is a company that is very well placed to be granted funding from the European Innovation Fund. They are innovation-heavy and can clearly show how much carbon dioxide they remove, says Magnus Andersson.
Funding necessary for carbon capture.
Carbon capture is an essential part of curbing global warming, according to IPCC’s Special Report. At the same time, funding is the biggest obstacle to capture technology, many experts say. But other initiatives to reduce carbon dioxide emissions are also topical for the European Innovation Fund.
– New manufacturing technologies that reduce carbon dioxide or initiatives to integrate more renewable energy, are also very relevant, says Magnus Andersson.
A golden opportunity
It is expected to be a huge pressure from stakeholders to take part of the financing and the application needs to be of very high quality. IMCG works closely with EU funding agencies and has partly participated in the design of financing solutions.
– We are central to the development of the instruments and have a very prominent position in EU funding. We work hard with the companies that contact us for help with the application. They must have a strong innovation and a will to drive and succeed with the development. Since the EU depreciates 40 percent of the loan, it is a very effective way to create benefits under attractive conditions, says Magnus Andersson.