In a press release, Frontier announced that it had facilitated offtake agreements with Stockholm Exergi, marking the initiation of Europe’s foremost commercial-scale carbon removal retrofit on the KVV8 biomass district heating facility.
The collaboration aims to execute a transformative project that will eliminate 800,000 tons of CO₂ annually, commencing in 2028.
Frontier’s involvement highlights the firm’s commitment to advancing carbon removal technologies.
The $48.6 million offtake agreements cover the facility’s carbon removal output between 2028 and 2030, which signifies a strategic move towards commercializing carbon capture and storage (CCS) solutions.
Out of the total carbon removed, a significant proportion of the first three years’ output will go to Frontier buyers.
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The release stated that specific details about the volume of tons that Frontier members will purchase and the cost per ton will be unveiled later, contingent on the outcome of a competitive reverse auction underway by the Swedish government.
Exergi hopes to win subsidies in that auction.
The CCS tons from Exergi’s bioenergy plant are purchased by Frontier’s buyers or companies, including Stripe, Alphabet, Shopify, Meta, JP Morgan Chase CO and other prominent corporations.
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The facility utilizes woody biomass waste such as treetops, branches, and sawmill dust sourced from Sweden and nearby European countries to generate heat and electricity for approximately 800,000 residents.
After the biomass combustion, the resulting CO2 will be transported using a ship and permanently stored deep underground.
Hannah Bebbington, Head of Strategy at Frontier, said, “If Exergi can prove that large-scale, responsible, tightly executed retrofits are possible, it will be truly catalytic, and dozens of other facilities will follow. This is a first-of-a-kind industrial project, but we have real confidence in this team.”
