🇫🇮 €26.6 million in funding for the capture of bio-based carbon dioxide

September 9, 2026

The Ministry of Economic Affairs and Employment has granted a total of EUR 26.6 million to three industrial biogenic carbon capture projects. The carbon dioxide captured in the projects will be used to produce electrofuels.

The investment aid aims to accelerate the launch of the first industrial projects for biogenic carbon capture and the scaling of capture solutions in subsequent projects. According to the Government’s call for applications, aid would be granted to investments where the captured carbon dioxide is either stored permanently or utilised in products.

“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,” says Minister of Climate and the Environment Sari Multala.

The Ministry launched a competitive bidding process for the investment aid in early 2026. The maximum amount of aid available was EUR 90 million. By the end of March 2026, the Ministry had received eight applications for total aid of about EUR 101 million.

The aid was granted to the following projects:

• EUR 21 million to Metsä Fibre Oy for a plant to capture carbon dioxide from the flue gases of Metsä Group’s Rauma pulp mill. The capture capacity of the plant is 100,000 tonnes of carbon dioxide per year.
• EUR 2.8 million to Nurmon Bioenergia Oy for capturing carbon dioxide from the Nurmo biogas plant. The capture capacity of the plant is 17,500 tonnes of carbon dioxide per year.
• EUR 2.8 million to Suomen Lantakaasu Oy for capturing carbon dioxide from the Kiuruvesi biogas plant. The capture capacity of the plant is 17,500 tonnes of carbon dioxide per year.

Conditions for projects in competitive bidding process

The selected projects must meet the eligibility criteria defined in the government decree on which the aid scheme is based. These include a minimum capture capacity of the plant and a verified method of utilising or storing the captured carbon. In addition, the capture of carbon dioxide must begin by 2030 at the latest and continue at least until the end of 2035. The use of other aid to cover the same costs is not permitted.

Progress in carbon dioxide capture at national and EU level

The European Commission considers negative emissions and carbon dioxide capture important elements in meeting its climate targets and recognises the need for further measures in this regard. In summer 2026, the Commission proposed amendments to the Emissions Trading Directive, including a number of proposals relevant to carbon capture. It is still unclear whether the proposals are adequate enough to accelerate investments to any significant degree. The proposals may increase the demand for carbon capture solutions, especially in sectors where reducing emissions remains challenging.

Overall, the progress in introducing carbon dioxide capture in recent years has been slower than expected due to high project costs, lack of sufficient incentives and, in particular, incomplete EU regulation.

The call for applications for investment aid organised by the Ministry of Economic Affairs and Employment ended on 31 March 2026. The criteria set for the projects, especially the timetable, the requirement to verify the method of utilising or storing the carbon dioxide, and the prohibition of other aid for the same costs reduced the number of eligible projects.

Prior to this aid scheme, support for carbon dioxide capture has been provided through investment aid for large-scale demonstration projects in new energy technology. The tax credit supporting clean industrial investments, which is currently under preparation at the Ministry of Finance, could possibly be used to subsidy large-scale carbon capture plants.

Originally published on September 9, 2026 by BotH₂nia.