Liquid Wind Secures €3.6 Million Funding For eFuel Project In Sweden

The funding will support pre-engineering work for what is expected to become one of Europe’s largest eMethanol plants, located in Örnsköldsvik, Sweden.

Part of the EU-backed Recovery and Resilience Facility (RRF), Industriklivet aims to drive Sweden’s green industrial transition. The grant recognizes the project’s strong contribution toward national emissions reduction targets and its potential to replace fossil fuels in challenging sectors such as maritime shipping, aviation and chemicals.

“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,” says Claes Fredriksson, CEO and founder of Liquid Wind.

In Europe’s 2025 clean-fuel funding landscape, Liquid Wind’s €3.6 million grant represents a key move at the pre-engineering stage of the continent’s eFuel expansion. It joins a wave of green investment across Europe with Spark e-Fuels (Germany) receiving €2.3 million for e-fuel tech, Tulum Energy (Italy) raising €22.9 million for low-carbon hydrogen, OXCCU (UK) securing €23.7 million in Series B funding for carbon-to-fuel operations, and Green Bunkers (Spain) obtaining €5 million to roll out sustainable maritime fuel infrastructure.

Together, these projects highlight Europe’s growing commitment to industrial-scale renewable fuel production, where public funding and private capital work hand in hand to speed up commercial deployment.

Founded in 2017 Liquid Wind is establishing itself as a frontrunner in the European eFuel market by developing commercial-scale green methanol facilities that transform renewable electricity and captured CO₂ into carbon-neutral fuel a crucial step toward decarbonising hard-to-electrify sectors.

The upcoming Örnsköldsvik plant marks Liquid Wind’s second facility, expected to double the output of its first. Once operational, it aims to produce around 100,000 tons of eMethanol per year by combining green hydrogen (from renewable-powered electrolysis) with 150,000 tons of biogenic CO₂ captured from Övik Energi’s bio-based combined heat and power (CHP) plant potentially offsetting 200,000 tons of CO₂e annually.

In collaboration with Övik Energi, the project embodies a circular, locally integrated energy model, optimizing resource use while strengthening regional supply chains for sustainable fuel production.

“I am very pleased to announce our new collaboration with Övik Energi. We have already been working together for a few years, so we are glad that this new partnership has now come together. We see a very strong desire from customers and fuel users to transition to sustainable fuels, something our facility in Örnsköldsvik will contribute significantly to. Our new eFuel project is already underway, and we are looking forward to bringing it to reality,” noted Fredriksson.

The Örnsköldsvik plant is set to serve as a blueprint for scaling similar eFuel facilities across Europe. Its planned capacity represents a significant leap for the industry, arriving as the green methanol market is poised for rapid growth projected to surge from €3–5 billion in 2025 to nearly €20 billion by 2030, according to estimates from the IEA, IHS and IMO. Notably the chemical sector is expected to account for about 32% of this demand.

Roland Nordin, CEO of Övik Energi, added: “We’re thrilled that Liquid Wind remains dedicated to setting up large-scale eFuel production in Örnsköldsvik. We are better positioned than ever to contribute to the green transition, thanks to our ability to operate our combined heat and power plant entirely on renewable energy. Together with Liquid Wind, we are strengthening our sustainability initiatives in Örnsköldsvik and fostering the industrial collaboration that happens every day at the High Coast Innovation Park business cluster.”

As Europe intensifies its climate goals, Liquid Wind’s eFuel approach combining renewable hydrogen production with local carbon capture provides a scalable model for green fuels.

The European Union aims for climate neutrality by 2050 and at least a 55% reduction in greenhouse gas emissions by 2030 under the Fit for 55 package, promoting widespread adoption of renewable energy, clean hydrogen and sustainable fuels in transport and industry.

Through initiatives like REPowerEU the EU is accelerating the shift away from imported fossil fuels, encouraging domestic innovation in eFuel and carbon-recycling technologies areas where Liquid Wind’s solutions could play a pivotal role.

In 2024 EU-Startups highlighted Liquid Wind following its €44 million Series C funding, aimed at scaling commercial eMethanol production and expanding its industrial partner network across Northern Europe.

About Liquid Wind

Liquid Wind develops commercial-scale eFuel facilities, producing carbon-neutral methanol from renewable electricity and captured CO₂. Founded to reduce global reliance on fossil fuels, the company focuses on scalable, sustainable solutions for hard-to-decarbonize sectors, including shipping, aviation and chemicals, driving Europe’s transition to a greener energy future.