Govt award €26.6m for carbon capture projects

The Ministry of Economic Affairs and Employment has granted a total of €26.6 million in investment aid to three industrial biogenic carbon capture projects, according to a ministry press release.

The funding aims to accelerate the launch of Finland's first industrial biogenic carbon capture projects and support the scaling of capture solutions in subsequent projects, with the captured carbon dioxide to be used in producing electrofuels.

Metsä Fibre Oy received the largest grant of €21 million for a plant capturing carbon dioxide from flue gases at Metsä Group's Rauma pulp mill, with a capacity of 100,000 tonnes annually. Nurmon Bioenergia Oy received €2.8 million for carbon capture at the Nurmo biogas plant, with a capacity of 17,500 tonnes per year, while Suomen Lantakaasu Oy received €2.8 million for carbon capture at the Kiuruvesi biogas plant.

"Finland has great potential to become a leader in the capture of biogenic carbon dioxide. These investments will help speed up the introduction of new solutions and reduce emissions while creating growth and new business opportunities," said Minister of Climate and the Environment Sari Multala.

The Ministry launched a competitive bidding process in early 2026 with a maximum of €90 million available. By the end of March, the Ministry had received eight applications requesting approximately €101 million in total aid. Selected projects must meet eligibility criteria, including a minimum capture capacity, a verified method for utilising or storing the captured carbon, and a requirement that capture begins by 2030 and continues until at least 2035. Projects are not permitted to use other aid to cover the same costs.