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Heidelberg Materials Withdraws Application for Major Carbon Capture Project at Swedish Cement Factory

Key Points
  • Heidelberg Materials has withdrawn its application to build a carbon capture facility at its Slite cement factory in Sweden.
  • The project, originally planned for completion by 2030, would have captured 4% of Sweden's annual carbon dioxide emissions.
  • The company cited lack of commercial viability and insufficient government funding as reasons for withdrawing the application.

Heidelberg Materials has withdrawn its application to build a major carbon capture and storage (CCS) facility at its cement factory in Slite, Sweden, according to a report from SVT Östergötland. The company had originally applied for environmental permits in June 2024 to construct the CCS facility, which would have captured carbon dioxide emissions from one of Sweden's largest polluters. The project also included plans to modify Slite harbor to ship the captured carbon dioxide.

The carbon capture facility was planned to be operational by 2030 and would have handled approximately 4 percent of Sweden's annual carbon dioxide emissions. However, the project faced setbacks when Heidelberg Materials announced in November 2025 that it was pausing the investment after failing to secure several billion kronor in government support.

This is a very large investment that we had planned to make. But today, that investment is not commercially viable. There is no demand or customers who are prepared to pay this additional cost that comes.

Hannes Borg, head of public affairs for Heidelberg Materials Sweden

Hannes Borg, head of public affairs for Heidelberg Materials Sweden, explained the decision: "This is a very large investment that we had planned to make. But today, that investment is not commercially viable. There is no demand or customers who are prepared to pay this additional cost that comes." The withdrawal of the application represents another step away from the project becoming reality, dealing a blow to Sweden's carbon reduction efforts.

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