Swedish electro-fuels (eFuels) project developer Liquid Wind AB has announced that it has raised EUR 44 million in Series C financing led by Uniper SE, HYCAP Fund I SCSp (HYCAP), and Samsung Ventures. The financing will support the development of 10 eFuel facilities by 2027 as part of the company’s vision of reaching 500 facilities globally by 2050.
The EUR 44 million (≈ US$47 million) raise is one of the largest funding rounds in Europe for electro-fuels (eFuels) this year.
The investment will accelerate the development of green eFuel production for hard-to-abate sectors including shipping.
We are pleased to strengthen our backing for Liquid Wind and its innovative eFuel facilities. Their standardized approach to scaling low-carbon fuel production is exactly what the maritime sector needs to meet its decarbonization targets. Since our initial investment, Claes and the team have demonstrated a laser focus on delivering the underlying projects and accelerating the energy transition in the maritime sector, said James Munce, CEO of HYCAP Group, a UK-based net zero asset management company dedicated to investing in and promoting sustainable and clean energy solutions.
The investment will support Liquid Wind’s strategy to develop 10 eFuel facilities by 2027, and the goal of 500 facilities globally by 2050.
It’s exciting to find a company that has the potential to disrupt multiple industries and simultaneously make carbon-free energy a reality. Liquid Wind is moving forward quickly into a market that is well set for a combination of growth and revenue potential, commented a spokesperson from Samsung Ventures, the corporate venture arm of the Samsung Group.
Morgan Stanley & Co. International plc acted as financial advisor to Liquid Wind on the capital raise.
Defossilize shipping
The global shipping sector is facing an urgent challenge: by 2050, all ship transport must be sustainable, and over 100,000 operational ships will need to transition to non-fossil fuel energy sources.
Consequently, Liquid Wind is seeing strong demand from shipping companies and clients for green shipping solutions to help decarbonize supply chains and meet essential targets.
The majority of global trade is transported by sea, accounting for 3 percent of global greenhouse gas (GHG) emissions according to the United Nations Conference on Trade and Development (UNCTAD).
This is driven by 98 percent of the world’s operational transport fleet running on conventional fossil fuels. The shipping industry must defossilize to meet the International Maritime Organization’s (IMO) 2050 net-zero targets.
Liquid Wind is developing the production facilities needed to meet the demand and replace carbon-intensive maritime fossil fuels with low-carbon eFuel, facilitating the decarbonization of global shipping.
Global shipping has realized the urgency of low-carbon eFuels as a commercial necessity to meet sustainability targets and new regulations. The demand for low-carbon maritime fuels is undeniable, and we are seeing major shipping companies launching eFuel-powered vessels. Our shareholders recognize this, and we are pleased to welcome Samsung Ventures as a new investor, alongside continued support from Uniper and HYCAP, said Claes Fredriksson, CEO and Founder of Liquid Wind.
Collaboration driven technology
Liquid Wind develops scalable eFuel facilities to convert biogenic carbon dioxide (CO2) and renewable electricity into eMethanol, a fossil-free alternative fuel.
Liquid Wind’s standardized and modularised approach enables efficient replication of these facilities, addressing common barriers such as high costs and limited scalability in eFuel adoption.
Central to the strategy is the use of the proprietary Digital Twin technology which allows the company to rapidly replicate, construct, and implement eFuel production facilities with reduced cost and risk.
On an annual basis, each standardized Liquid Wind facility will produce up to 100,000 tonnes of eFuel while upcycling 150,000 tonnes of CO2, generating 94 percent lower emissions compared to fossil fuels on a ’Well-to-Wake’ basis.
In collaboration with leading decarbonization companies Alfa Laval, Carbon Clean, Siemens Energy and Topsoe, Liquid Wind has established a joint eFuel Design and Performance Centre in Hørsholm, Denmark, dedicated to innovating and accelerating the deployment of eFuel plants.
This backing strengthens our capacity to accelerate production and advance our vision to reduce the world’s dependency on fossil fuels. The investment, the largest in our company history, reflects their confidence in Liquid Wind’s potential to scale eFuel production in the years to come, said Claes Fredriksson.
Additionally, Liquid Wind has partnered with Sundsvall Energi, Umeå Energi, NordFuel, and Puhuri, to develop three projects in Sweden and Finland.
As part of these initiatives, and alongside the development of the company’s own eFuel facilities, Uniper has selected Liquid Wind to lead the development of the NorthStarH2 project in Östersund, Sweden.
Each plant is projected to save approximately 200,000 tonnes of CO2 annually.
We believe that only through a partnership approach can the visionary projects needed for the energy transition be truly successful. Joint projects such as NorthStarH2, which aims to produce 100,000 tonnes of eMethanol for use in shipping and the chemical industry, can lead the way. Our ongoing partnership with Liquid Wind has proven to be very fruitful, and we look forward to achieving further milestones together and actively shaping the future of the energy industry. This continued collaboration fits perfectly with Uniper’s commitment to achieve carbon neutrality by 2040, said Jan Taschenberger, COO of New Green Power and Gas at Uniper.
