Höganäs AB and Öresundskraft sign agreement on carbon removals.

Höganäs AB, a global leader in metal powders and advanced ceramic powders, has signed a ten-year agreement with Swedish energy company Öresundskraft to purchase carbon removals. Öresundskraft will generate the carbon removals at its future CCS facility at the Filbornaverket waste-to-energy plant. The agreement is Öresundskraft’s first with an industrial company and marks an important step in developing Sweden’s carbon removal market.

Höganäs AB, a global leader in metal powders and advanced ceramic powders, has signed a ten-year agreement with Swedish energy company Öresundskraft to purchase carbon removals. Öresundskraft will generate the carbon removals at its future CCS facility at the Filbornaverket waste-to-energy plant. The agreement is Öresundskraft’s first with an industrial company and marks an important step in developing Sweden’s carbon removal market.

Carbon removals are generated when biogenic carbon dioxide is captured and permanently stored, thereby removing CO₂ from the natural carbon cycle. The agreement covers 7,000 tonnes of carbon removals per year, totalling 70,000 tonnes over the ten-year contract period. For Öresundskraft, this is its first agreement with an industrial company and an important step in developing the Swedish carbon removal market.

– This demonstrates that the market for carbon removals is beginning to take shape. Höganäs AB is well advanced in its efforts to reduce emissions and has a clear ambition to take responsibility for the emissions that remain. We are particularly pleased that this agreement brings together two strong companies from the same region in southern Sweden. We are proud that Höganäs AB has chosen to work with us and that we can play a part in their continued journey towards net zero, says Stefan Håkansson, CEO of Öresundskraft.

The agreement is part of Höganäs AB’s work towards net-zero emissions. As a global leader in advanced ceramic powders and metal powders, the company’s emissions primarily stem from its manufacturing processes. Höganäs AB has worked for several years to reduce emissions from its own operations and has also explored opportunities for carbon capture at its facilities. The company aims to achieve net-zero emissions across its entire value chain by 2037. Its priority is to continue reducing emissions from its own operations, while CCS and carbon removals can help address those that are difficult to eliminate through other measures.

– We have made significant progress in reducing our emissions and are well on track to meet our climate targets. Carbon removals are an important complement for emissions that are difficult to eliminate, and the agreement with Öresundskraft is a concrete step in our continued climate efforts, says Henrik Ager, President and CEO of Höganäs AB.

Öresundskraft’s CCS facility at Filbornaverket is scheduled to be operational in 2029 and will capture approximately 200,000 tonnes of carbon dioxide per year. Around 45 per cent of this will be biogenic CO₂ and can be sold as carbon removals through Carbon Removal Certificates (CRCs). This enables companies to address residual emissions that are difficult to eliminate through other measures.

Through the agreement, Höganäs AB and Öresundskraft are taking another step towards establishing a market for permanent carbon removals, a market expected to play an important role in the transition to net-zero emissions.