Gothenburg-based energy innovator Liquid Wind is charging ahead with its next-generation eFuel production facility, securing €3.6 million in support from the Swedish Energy Agency’s Industriklivet programme.
The backing will fund pre-engineering for what is set to be one of Europe’s largest eMethanol plants, based in Örnsköldsvik, Sweden.
The funding forms part of the EU-backed Recovery and Resilience Facility (RRF), with Industriklivet designed to accelerate Sweden’s green industrial transformation. The grant was awarded based on the project’s alignment with national emissions reduction goals and its potential to enable significant fossil fuel substitution in hard-to-abate sectors such as maritime shipping, aviation, and the chemical industry.
“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 the 2025 funding landscape, Liquid Wind’s grant sits at the strategic pre-engineering phase of Europe’s clean-fuel push. It aligns with a broader pattern of investment across the continent, where companies such as Spark e-Fuels (Germany) secured €2.3 million to advance e-fuel technology, Tulum Energy (Italy) raised €22.9 million to scale low-carbon hydrogen production, and OXCCU (UK) closed a €23.7 million Series B to expand carbon-to-fuel operations.
Meanwhile, Spain’s Green Bunkers obtained €5 million to deploy sustainable maritime fuel infrastructure.
Together, these initiatives reflect a diversified but converging trend toward industrial-scale renewable fuels across Europe – with Liquid Wind’s project underscoring the complementary role of public-sector support alongside private capital in accelerating commercial deployment.
Founded in 2017, Liquid Wind is carving out a leading position in the European eFuel landscape. The company develops commercial-scale facilities that produce green methanol – synthetic fuel derived from renewable electricity and captured carbon dioxide.
Unlike traditional fuels, eMethanol offers a carbon-neutral alternative, critical for decarbonising sectors that can’t easily electrify.
The Örnsköldsvik project will be the second such facility for the startup but is expected to double the production capacity of its predecessor. Once operational, it aims to produce around 100,000 tons of eMethanol annually by combining green hydrogen (generated via electrolysis using renewable electricity) with approximately 150,000 tons of biogenic CO₂ captured from Övik Energi’s bio-powered combined heat and power (CHP) plant.
In doing so, it could displace an estimated 200,000 tons of CO₂e emissions each year.
In a demonstration of circular and collaborative energy systems, the site will be integrated with Övik Energi, a regional utility and long-term partner to Liquid Wind. The integration allows for not only efficient resource use but also establishes a resilient local supply chain for sustainable fuel.
“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 expected to be a blueprint for scaling similar facilities across Europe. Its planned capacity marks a considerable step forward in the sector, especially as the green methanol market is forecast to explode – from a projected €3–5 billion in 2025 to as much as €20 billion by 2030, according to projections from the IEA, IHS, and the IMO. The chemical sector alone is expected to comprise 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 ramps up its climate ambitions, Liquid Wind’s eFuel model – pairing renewable hydrogen production with local carbon capture – offers a replicable path to greener fuels at scale.
The European Union has set ambitious targets to phase out fossil fuels in line with its European Green Deal, aiming for climate neutrality by 2050 and at least a 55% reduction in greenhouse gas emissions by 2030 under the Fit for 55 package. These frameworks promote large-scale deployment of renewable energy, clean hydrogen, and sustainable fuels across transport and industry.
Through initiatives such as the REPowerEU plan, the EU also seeks to accelerate the transition away from imported fossil fuels, fostering domestic innovation in eFuel and carbon-recycling technologies – goals Liquid Wind could prove vital in.
EU-Startups previously featured Liquid Wind in a 2024 article detailing its €44 million Series C funding round, which focused on scaling commercial eMethanol production and expanding its network of industrial partners across Northern Europe.
Read the orginal article: https://www.eu-startups.com/2025/10/liquid-wind-advances-europes-efuel-ambitions-with-e3-6-million-to-advance-swedish-emethanol-facility/
