Liquid Wind Secures Record EUR 44 Million Funding to Accelerate Global E-Fuel Production and Reduce Fossil Fuel Dependency

Jakarta, INTI - Swedish electrofuels company Liquid Wind has raised EUR 44 million (USD 46.4 million) in a Series C financing round, marking the largest funding in the company's history. This significant investment will support the construction of 10 e-fuel facilities by 2027, contributing to the growing global shift towards low-carbon alternatives in the energy sector. The Series C funding round is one of the biggest in the e-fuels industry in 2024, highlighting the increasing demand for sustainable fuels in various industries, especially shipping and transportation.

The investment was led by existing backers such as the German energy group Uniper SE (ETR:UN0) and UK private equity firm HYCAP, with Samsung Ventures joining as a new investor. This financial backing strengthens Liquid Wind’s position in advancing its mission to reduce global dependency on fossil fuels and drive the widespread adoption of e-fuels in sectors traditionally reliant on carbon-intensive fuels.

The Growing Demand for Low-Carbon Fuels in Maritime Industry

Claes Fredriksson, CEO and founder of Liquid Wind, emphasized the undeniable demand for low-carbon maritime fuels, stating, “The demand for low-carbon maritime fuels is undeniable, and we are seeing major shipping companies launching eFuel-powered vessels. This backing strengthens our capacity to accelerate production and advance our vision to reduce the world’s dependency on fossil fuels.”

The maritime sector, a significant contributor to global carbon emissions, is increasingly seeking sustainable alternatives to traditional fuels. E-fuels, such as e-methanol, are gaining traction as a viable solution to reduce carbon footprints in shipping. Liquid Wind’s facilities aim to produce e-methanol by utilizing biogenic CO2 and renewable electricity, offering a cleaner alternative to fossil-based marine fuels. By focusing on the shipping industry, Liquid Wind is addressing a critical challenge in the decarbonization of sectors that are difficult to electrify, such as long-distance maritime transport.

Liquid Wind’s Global Expansion Plan: 500 E-Fuel Facilities by 2050

The company’s business model is focused on building facilities that convert renewable electricity and biogenic CO2 into e-methanol. A typical Liquid Wind facility has the potential to produce up to 100,000 tons of e-fuel annually. By 2050, the company has set an ambitious target to build 500 e-fuel plants worldwide, contributing significantly to global efforts to transition from fossil fuels to renewable energy sources.

With the Series C funding, Liquid Wind aims to accelerate its plans for constructing new facilities in Sweden, Finland, and beyond. The company has already partnered with energy companies such as Sundsvall Energi, Umea Energi, NordFuel, and Puhuri to develop three e-fuel projects in Sweden and Finland. These partnerships are pivotal in scaling up e-fuel production in the Nordic region, a key area for clean energy innovations.

Strategic Collaboration with Uniper and Samsung Ventures

Uniper SE, one of Liquid Wind’s major shareholders, plays a crucial role in the company’s ongoing success. The two companies have also agreed to collaborate on joint e-fuel initiatives, including the NorthStarH2 project in Sweden, which aims to advance the development of hydrogen and e-fuels for a variety of industrial applications. Uniper’s involvement underscores its commitment to the energy transition, particularly in supporting projects that reduce carbon emissions and enhance the production of renewable fuels.

Samsung Ventures, a new investor in this round, brings additional strategic value to Liquid Wind’s growth. Samsung’s investment underscores the growing global interest in the e-fuel sector and the importance of technological innovation in addressing climate change. As part of the global push towards clean energy, partnerships with companies like Uniper and Samsung Ventures position Liquid Wind for long-term success in a competitive and evolving market.

Expansion of E-Fuel Production Capacity in Scandinavia

In November 2023, Liquid Wind announced plans to intensify its partnership with a group of decarbonization experts to develop and commercialize 10 additional e-methanol plants in the Nordic region by 2027. These facilities will play a critical role in the company’s goal to increase e-fuel production, addressing the growing demand for sustainable fuels in shipping and other industries.

The Nordic region is an ideal location for these projects due to its abundant renewable energy resources, such as wind and hydro power. By leveraging these resources, Liquid Wind can produce e-fuels in a carbon-neutral manner, offering an environmentally friendly solution to global fuel consumption. The new plants will not only provide clean fuel alternatives but also contribute to job creation and economic growth in the region.

The Role of E-Fuels in the Future of Renewable Energy

E-fuels are increasingly seen as a critical solution for decarbonizing industries that are difficult to electrify, such as shipping, aviation, and heavy transport. Unlike hydrogen or battery-electric vehicles, e-fuels can be used in existing combustion engines and infrastructure, providing an immediate alternative to fossil fuels. This flexibility makes e-fuels an attractive option for industries that cannot easily transition to electric technologies.

The production of e-fuels involves capturing CO2 from the atmosphere or industrial processes and converting it into liquid fuels using renewable electricity. This technology offers a way to recycle carbon and close the carbon loop, helping to reduce greenhouse gas emissions. E-fuels can also be integrated into the existing infrastructure of transportation and energy systems, making them a more feasible option for large-scale adoption in the near future.

The maritime sector, in particular, is a prime candidate for the adoption of e-fuels. Shipping accounts for a substantial portion of global carbon emissions, and e-fuels offer a path to decarbonize this hard-to-abate industry. By investing in e-fuel production and supporting its use in maritime transport, Liquid Wind is contributing to the transition towards a more sustainable global shipping industry.

Liquid Wind’s Contribution to the Global Clean Energy Revolution

Liquid Wind’s role in the clean energy revolution is significant, as the company works to develop scalable solutions to reduce fossil fuel dependence. By securing Series C funding and expanding its capacity to produce e-fuels, the company is positioning itself as a key player in the global transition to renewable energy. The support from Uniper, Samsung Ventures, and other partners highlights the growing recognition of the potential of e-fuels to transform energy systems worldwide.

The company’s efforts to expand its operations in Scandinavia and globally will help meet the increasing demand for low-carbon fuels and reduce the environmental impact of industries that rely on fossil fuels. With a clear commitment to sustainability and a forward-looking strategy, Liquid Wind is well on its way to achieving its long-term goals of reducing global carbon emissions and promoting the widespread use of renewable energy.

The Economic and Environmental Impact of E-Fuels

The e-fuel industry has the potential to create significant economic opportunities, particularly in regions with abundant renewable energy resources. By developing large-scale e-fuel production facilities, companies like Liquid Wind can generate jobs and stimulate local economies. Additionally, the widespread use of e-fuels can help stabilize energy prices by diversifying the global energy mix and reducing reliance on volatile fossil fuel markets.

From an environmental perspective, e-fuels offer a promising solution to mitigating climate change. By utilizing CO2 captured from the atmosphere and producing fuel through renewable energy, e-fuels can significantly reduce net carbon emissions in sectors where other renewable energy technologies are not yet viable. As the global economy continues to shift towards cleaner energy sources, e-fuels will play an increasingly important role in decarbonizing hard-to-abate sectors and helping meet global climate targets.

Looking Ahead: E-Fuels as a Key Component of the Future Energy Landscape

Looking towards the future, e-fuels are expected to play a critical role in the global energy transition. As more companies and governments commit to achieving net-zero emissions by 2050, the demand for sustainable alternatives to fossil fuels will continue to grow. With the support of key investors and strategic partnerships, Liquid Wind is well-positioned to lead the charge in producing and scaling e-fuels to meet this demand.

The company’s commitment to building 500 e-fuel facilities by 2050 aligns with global efforts to create a cleaner, more sustainable energy future. As the production and use of e-fuels become more widespread, the potential for reducing carbon emissions across multiple industries becomes even more promising. With the support of investors, partners, and governments, Liquid Wind’s efforts could pave the way for a cleaner, greener future for generations to come.