Nordic countries lay groundwork for carbon capture – a new report provides an overview of key themes and issues

Different solutions can reduce emissions and remove carbon dioxide from the atmosphere

CCUS refers to a combination of technologies, in which carbon dioxide is captured from flue gases or ambient air, stored or utilised for products. Capture and permanent storage of fossil carbon dioxide can prevent emissions from entering the atmosphere. The utilisation of captured CO2 in products, whether from fossil or biogenic origin, or directly from the atmosphere can substitute fossil-based materials, preventing emissions. CO2 can be removed from the atmosphere if captured CO2 of biogenic or atmospheric origin is stored permanently or in durable products.

“Nordic countries approach CCUS in different ways. Norway, Denmark and Iceland are developing their capacity for geological storage, while in Finland and Sweden the largest potential is currently linked to biogenic carbon capture”, researcher Jari Niemi says.

In practice, the capture and storage of biogenic carbon could mean that flue gases from the combustion of wood biomass at an industrial plant are separated, purified, and transported and injected into geological storage, so that the CO2 which was captured via biomass growth is not returned to the atmosphere. Utilisation means that the CO2 is processed into products, for example fuels or plastics.

Not everything can be done in Finland: geological storage is currently not permitted and so far no sites for geological storage have been identified. Cross-border cooperation is needed in order to transport carbon dioxide to other countries for storage.

Common reporting guidelines for carbon capture and utilisation should be improved

A key message of the report is that CCUS emissions and removals should be reported coherently. It is necessary to develop and approve good practice guidelines for greenhouse gas inventory reporting so that activities are visible and count towards climate targets. This would also enable international cooperation and trade of removal units in the future.

Many policy instruments are used to accelerate CCUS development, and Nordic countries often use grants and reverse auctions. The Finnish government will soon distribute EUR 90 million in state aid to projects which capture biogenic carbon dioxide.

“At this stage it is difficult to estimate the possible effects of the state aid scheme on Finland’s emissions. Only after the bidding will we know if carbon dioxide will be transported to for example Denmark or Norway for storage or utilised for products”, says researcher Fredric Mosley.

Industrial carbon removals enter climate policy 

New ways for supporting carbon removals are being evaluated on national and EU-level. One possible option is to integrate permanent storage of biogenic or atmospheric carbon dioxide into the EU Emission Trading System. In this way, removal units could be traded in the broader European Economic Area. New market mechanisms require careful planning, and a design of such a system should not undermine mitigation efforts and the implementation of transformative policies.

”A key conclusion of the report is that carbon removals can be an important part in the portfolio of climate solutions, but it does not replace necessary ambitious emission reductions. The role of technologies is complementary, and their deployment requires cooperation within and between countries”, says leading researcher Sampo Soimakallio.