Wedoany.com Report-Oct. 14, Swedish e-fuel developer Liquid Wind has received €3.6 million (SEK 39 million) in funding to advance its e-methanol project in Örnsköldsvik, Sweden. The grant, provided by Industriklivet, a Swedish Energy Agency program supporting the nation’s industrial shift to sustainable practices, will fund pre-engineering work for a full-scale e-methanol facility.

The Swedish Energy Agency recognizes the project’s potential to lay a robust foundation for a future investment decision, enabling the construction of a facility that will significantly reduce carbon emissions. By producing e-methanol, the plant aims to replace fossil fuels in challenging sectors such as shipping, aviation, and chemicals, contributing to Sweden’s environmental goals.

Claes Fredriksson, CEO and founder of Liquid Wind, expressed enthusiasm about the funding: “We are pleased to receive the Industriklivet support for our project in Örnsköldsvik. It represents a strong commitment from the Swedish government that not only accelerates the transition to fossil-free eFuel production in Sweden but also sends a powerful signal to international investors and offtakers. It’s a clear endorsement of our vision to scale local and resilient eFuel solutions in Europe.”

Announced in early 2025, the Örnsköldsvik facility will integrate with Övik Energi’s biofuel-powered combined heat and power (CHP) plant. The project will utilize renewable electricity to produce green hydrogen through electrolysis, combining it with 150,000 tons of biogenic CO2 captured from the CHP plant. This process is expected to yield 100,000 tons of e-methanol annually, reducing CO2e emissions by approximately 200,000 tons each year.

The initiative aligns with broader efforts to decarbonize industries that rely heavily on fossil fuels. By leveraging local resources and renewable energy, the facility aims to provide a sustainable fuel alternative, enhancing energy resilience in Sweden and supporting Europe’s green transition. The project’s advancement is anticipated to attract further investment, both domestically and internationally, reinforcing Sweden’s role in innovative energy solutions.

Beyond Europe, Liquid Wind is exploring opportunities for e-fuel production globally. In late 2024, the company signed a collaboration agreement with Samsung E&A, an engineering firm, to accelerate e-fuel project development in Asia, Africa, and the Middle East. This partnership underscores Liquid Wind’s ambition to expand its sustainable fuel solutions worldwide.

The Örnsköldsvik project represents a critical step in scaling e-methanol production, with pre-engineering work setting the stage for future construction. The integration with existing infrastructure, such as the CHP plant, optimizes resource use and enhances efficiency. As the project progresses, it is expected to contribute significantly to emission reductions while fostering economic benefits through job creation and technological innovation in the region.

This funding milestone strengthens Liquid Wind’s position in the global e-fuel market, promoting sustainable energy alternatives and supporting Sweden’s leadership in the green energy transition. The Örnsköldsvik facility, once operational, will play a pivotal role in reducing reliance on fossil fuels and advancing environmental sustainability.