The energy company Söderenergi has chosen to pause the project at the Igelstaverket combined heat and power plant outside Södertälje.
According to the company's CEO, Robert Tingvall, the state investment support has not been as large as hoped.
"Among other things, we have been denied an application for a grant from the Swedish Energy Agency. We also feel that the state has reduced its ambitions to buy negative emissions," he tells the newspaper.
The company also says private-market development has not been what it had hoped for.
"It has taken a very long time to get customers to sign contracts, and we need a guaranteed income to be able to continue working," says Tingvall.
