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What is Capsol Technologies?
For those unfamiliar, what is Capsol Technologies, and how does it uniquely contribute to the CDR ecosystem?
Capsol’s post-combustion technology combines inherent heat recovery and generation in a stand-alone unit based on a proven and safe solvent. Our technology has been selected for use in Stockholm Exergi’s flagship Bioenergy with Carbon Capture and Storage (BECCS) facility, one of the world’s largest BECCS plant. The project has reached Final Investment Decision (FID), with secured carbon removal offtake agreements including 5.08 million tonnes with Microsoft which is one of the largest durable CDR deals ever, and a USD 49 million commitment from Frontier. It has also attracted substantial public funding, including EUR 1.7 billion from the Swedish Energy Agency and EUR 180 million from the EU Innovation Fund. This demonstrates how our technology can support large-scale, real-world deployment of CDR and help advance the commercialization of BECCS solutions. We also see growing momentum around cross-value-chain collaboration: emitters, technology providers like ourselves, storage operators, and carbon credit buyers are engaging earlier and more strategically to de-risk projects and align incentives. This is particularly critical in BECCS projects, where the commercial case hinges on both predictable storage access and a credible market for removal credits.
Milestone Acheievement
Capsol Technologies recently reported its Q1 2025 results, indicating a strategic transition and preparations to break even by 2026. Could you elaborate on the key factors driving this milestone and how it positions the company for future growth?
As outlined above, in Q1 2025, the project at Stockholm Exergi reached its final investment decision (FID). The validation brought to Capsol and our solutions by this FID cannot be overstated. Having a project of this magnitude deploying our solutions has created ripple effects in the market and made us that much more well known and reputable. We are using this momentum to be in the best position possible for projects in the development phase, making sure we are expanding on our already strong mature pipeline.
Technology
Your technology platform, including solutions like CapsolEoP® and CapsolGT®, emphasizes energy efficiency and safety. How do these innovations differentiate Capsol in the competitive carbon capture market?
Solvent-based post-combustion carbon capture is considered the most mature CO2 capture technology and it is applicable to both greenfield and retrofit projects.
•The CapsolEoP® process is post-combustion carbon capture technology for large industrial emitters that reduces electricity consumption to as low as *0.7–1.5 GJ/tonne CO₂ captured. The solution is applicable for cement, biomass, EfW, pulp and paper, power generation, and process industries. It is a stand-alone, end-of-pipe system that can be retrofitted to existing plants with minimal operational impact. In simple terms the CapsolEoP® is both a CO2 capture process and a heat pump. The electricity input to the heat pump very efficiently provides all the necessary heat to the capture part.
*Without added heat integration
As a result, the need for external heat supply is removed. By this smart process design in some configurations, the system can also deliver surplus heat for district heating in bioenergy and energy-from-waste plants without the need for any external additional heat pumps.
•The CapsolGT® technology is designed to capture CO₂ directly from the gas turbine’s hot exhaust. By utilizing the high temperature heat in such a flue gas, Capsol is able to turn the CO2 capture plant into a bottoming cycle for the open cycle gas turbine. It applies to simple cycle gas turbines (brownfield and greenfield) and low-carbon power plants (greenfield), such as those needed for data centers. CapsolGT® simplifies the CO₂ capture process by using waste heat from the turbine outlet to generate electricity while capturing carbon. It turns the simple cycle gas turbine into a combined cycle power plant without the need for separate steam -boilers and -turbines, and enables efficient capture with minimal operational impact. CapsolGT® can be used with biogas for carbon removal.
Stakeholders
CapsolGo® serves as a mobile demonstration unit for the full-scale carbon capture. How has this tool facilitated stakeholder engagement in industries like cement, biomass, and energy-from-waste?
We understand the challenge of deploying new carbon capture technology in operational environments. The CapsolGo® mobile test unit is used to validate the performance of our process on real flue gas and educate and engage project stakeholders including regulators, investors, and operators on how carbon capture works and its benefits. CapsolGo® has already been deployed at nine different industrial sites across Europe, with around 19,000 operational hours in biomass, cement and energy-from-waste. These campaigns are supporting clients with pre-investment validation, public funding applications and potentially faster regulatory approval.
Capsol has recently gained strong traction in the cement industry, with clients such as Holcim and SCHWENK. From our collaborations, Capsol’s clients have mentioned that their customers are willing to pay more for decarbonized cement, highlighting the growing demand for effective carbon capture solutions. Similarly, the emergence of initiatives like the Clean Industrial Deal, growing policy framework in Europe and other regions places a strong emphasis on decarbonizing industrial value chains where CCS will play a critical role.
Project Pipeline
With a mature project pipeline encompassing 13 projects and a potential of 6.5 million tonnes of CO₂ capture, what strategies is Capsol employing to convert these opportunities into finalized investments by 2026?
Our mature project pipeline holds a potential for 22.2 million tonnes of annual CO₂ capture. Within this portfolio of projects, we have identified 13 projects that have the potential to reach FID in 2026. Our strongest contribution to these projects materializing is the competitiveness and attractive economics of our solution. Additionally, we are supporting customers in getting to FID including advising on what is needed for carbon removal buyers; funding, transport and storage options and how to set up a project to be executed successfully. Beyond technology, we are focusing on how to help make carbon capture ‘easier to buy’ for the industry. This is important for us as a business and to make impact on carbon reduction and removal.
Hard-To-Abate Sectors
In light of Capsol's recent developments and technological advancements, how do you envision the company's role in scaling CDR solutions globally, particularly in hard-to-abate sectors?
To support large-scale deployment, Capsol licenses its proprietary, heat-generating carbon capture technology through full-scale plant designs capable of capturing between 100,000 and over 1 million tonnes of CO₂ annually. By significantly reducing electricity consumption, the technology offers a cost-effective solution for post-combustion capture. Ongoing technological advancements continue to improve performance, with several first-of-a-kind industrial deployments expected in the coming years. These projects are anticipated to further lower costs and accelerate adoption across key sectors.
With increasing investment in CCS including point source carbon removal projects such as BECCS, Capsol is also well placed to scale capture infrastructure and help make carbon capture more accessible and cost-effective for industry.
Primary Challenges
Looking ahead, what are the primary challenges and opportunities Capsol Technologies anticipates in the carbon capture industry, and how do you plan to address them to ensure sustainable growth?
One of the primary challenges in the carbon capture industry is policy certainty which can increase market risk and ability for our customers to make decisions firmly and more quickly. The IEA2 highlights that carbon capture, utilization, and storage (CCUS) are essential across energy and industrial pathways to reach global net zero targets, particularly to abate emissions from hard‑to‑decarbonize sectors and enable negative emissions where needed. The IPCC3 similarly emphasizes that most 1.5 °C-aligned scenarios rely heavily on large-scale CCS, BECCS, and other carbon removal tools to balance residual emissions and meet climate goals. While CCS is not going away, policy and regulatory clarity are needed to accelerate deployment. Strategic partnerships are part of Capsol’s business model. By acting as a bridge between governments, corporations, and research institutions, partnerships will be key in securing funding, sharing expertise, and ensuring regulatory alignment wherein which Capsol can accelerate the deployment of large-scale carbon capture projects. The company will continue to innovate and focus on driving down the cost of capture to make projects viable even without strong policy support. In addition, Capsol’s lower capture costs, achieved through energy efficiency and process simplicity, can already make many projects profitable today.
Source:
2: https://www.iea.org/commentaries/it-is-time-for-ccus-to-deliver?utm_source=chatgpt.com
3: https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_SPM.pdf?utm_source=chatgpt.com
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