CCS Market: Öresundskraft Seals EU-First Waste-to-Energy Deal

Öresundskraft Reaches FID, Signs Northern Lights Deal for EU's First Full-Chain Waste-to-Energy CCS Project 

HELSINGBORG, Sweden October 1, 2026  Swedish energy company Öresundskraft Kraft & Värme AB has reached a Final Investment Decision (FID) and signed a transport and storage agreement with Northern Lights JV for up to 200,000 tonnes of CO₂ per year from its Filbornaverket waste-to-energy facility  making it the first waste-to-energy plant in the European Union to achieve FID for the complete Carbon Capture and Storage (CCS) chain, encompassing capture, transport, and permanent geological storage. 

The milestone marks a decisive transition from planning to implementation for Öresundskraft, with construction at the Helsingborg facility scheduled to commence in late 2026 and commercial operations targeted for the fourth quarter of 2029. 

Under the agreement, CO₂ will be captured and liquefied at the Filbornaverket plant before being transported by truck to the Port of Halland in Halmstad. Northern Lights will then ship the liquefied CO₂ to its receiving terminal in Øygarden, Norway, where it will be injected and permanently stored in a designated reservoir 2,600 meters below the North Sea seabed. 

The deal represents one of the largest investment decisions in Öresundskraft's history and expands Northern Lights' customer base to seven industrial clients across four countries. Öresundskraft becomes the second Swedish company to access Northern Lights' transport and storage services, following Stockholm Exergi's commercial cross-border agreement announced in 2025. 

"The agreement with Öresundskraft is an important milestone for Northern Lights and it further strengthens the Nordics as a leading CCS region. Öresundskraft's project contributes to the development of a portfolio approach with shared infrastructure. This will be an enabler of further growth of the CCS industry," said Tim Heijn, Managing Director of Northern Lights JV. 

Stefan Håkansson, CEO of Öresundskraft, noted that Northern Lights had been "highly responsive" throughout the process, adding that sharing infrastructure and developing solutions for multiple operators would be "key" to advancing the sector. 

Key Highlights: 

• Öresundskraft's Filbornaverket plant becomes the first waste-to-energy facility in the EU to reach FID for the full CCS chain covering carbon capture, transport, and permanent geological storage. 

• Northern Lights JV will transport and store up to 200,000 tonnes of CO₂ per year, with commercial startup targeted for Q4 2029. 

• Captured CO₂ will be permanently stored 2,600 meters below the North Sea seabed at Northern Lights' Øygarden terminal in Norway, following truck transport to the Port of Halland and onward marine shipment. 

• The agreement expands Northern Lights' portfolio to seven industrial customers across four countries, reinforcing the Nordic region as a leading CCS deployment hub in Europe. 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, the Öresundskraft FID is consistent with the broader structural shift in the global CCS market toward shared, multi-emitter storage infrastructure. The global carbon capture and storage (CCS) market was valued at USD 7.20 billion in 2025 and is estimated at USD 8.35 billion in 2026, forecast to reach USD 30.54 billion by 2035, expanding at a 15.5% CAGR over the 2026–2035 period. NMSC analysts note that the Waste to Energy end-user segment is among the faster-growing verticals within the CCS market, projected to expand from USD 0.36 billion in 2025 to USD 1.71 billion by 2035 at a 17.0% CAGR, as operators increasingly pursue full-chain CCS solutions to address both biogenic and fossil CO₂ emissions. The Öresundskraft project exemplifies the consortium hub model that NMSC identifies as the dominant structural driver of CCS market growth through 2035. 

Industry Outlook: 

The Öresundskraft Northern Lights agreement underscores the accelerating commercialization of cross-border CCS infrastructure in Europe, where the EU's CCS Directive and Innovation Fund continue to anchor project economics for hard-to-abate industrial sectors. As Northern Lights scales its storage capacity from 1.5 million to over 5 million metric tons per annum by 2028, the shared transport and storage model it has pioneered is expected to catalyze further FIDs across the waste-to-energy, cement, and chemical sectors. The Filbornaverket project, which will capture both biogenic and fossil CO₂ emissions, also positions Öresundskraft to contribute to carbon removal efforts a growing priority under European climate policy frameworks. With construction set to begin in late 2026, the project represents a concrete step in the transition of CCS from demonstration-scale ambition to commercial-scale deployment across the European industrial landscape. 

Source: Carbon Capture Journal 

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Prepared By: Sanyukta Deb