28 Feb 2022

Wind in the Sails for Million Dollar Project in Örnsköldsvik – More Cities in Northern Sweden to Come

With the help of captured carbon dioxide and hydrogen, Liquid Wind is going to break new industrial ground. The first facility for big scale production of electro fuel is planned to be ready 2024 in Örnsköldsvik. The green fuel can revolutionize the maritime industry, making it carbon neutral.

Liquid Wind is already scouting locations in Northern Sweden for upcoming facilities.

- This is green electricity that can make a real difference, says Claes Fredriksson, CEO and founder.

The company, based in Gothenburg has taken the leadership jersey in the race of building the first full scale facility for production of green electro fuel, also called electro methanol or e-methanol.

So far Liquid Wind is a success story. In barely five years Liquid Wind has gone from start up to scale up and founded a consortium with global actors such as German Siemens Energy and Uniper but also Swedish Alfa Laval is onboard.

- We have made an exciting journey due to the heavy maritime industry in a short period of time has woken up and that we are doing exactly what the customers want, helping them to reach their long-term sustainability goals by lowering the CO₂ And the customers’ need for green fuel is growing, says Claes.

Since Claes Fredriksson started Liquid Wind five years ago, he has had partners such as Alfa Laval, Uniper and Ørsted on board - three major players in the world market who strongly believe in the future of electric fuel.

The facility being planned in Örnsköldsvik has gotten the name FlagshipONE and the final decision of investing about SEK 1.5 billion will be made during 2022.

Liquid Wind is riding the wave of the increased demand to electrify, everything from cars and kick-bikes to big cargo ships. The difference is just that the big ships cannot be electrified with batteries, instead the electrification is in liquid form.

The Maritime Industry Wants to Make a Green Imprint

E-methanol is made by combining hydrogen with carbon dioxide. With the electricity generated from wind power, water is first split into oxygen and hydrogen. Then hydrogen is mixed with carbon dioxide into e-methanol in a reactor.

- It is an electricity-intensive process but the energy we are storing in the e-methanol gives a highly effective fuel. We use the heat for precipitation of carbon dioxide and we are working to streamline the entire electrical process, something we want to optimize as much as possible, says Claes.

The end product is perfect for the ship market. The company right now is alone in its niche.

- For starters, we see shipping as the most likely end customer since they buy the most volume per customer unit. According to my observations, there are no other actors in the world who can produce electro fuel of this magnitude, therefor we are counting on more financing for more facilities as soon as we get one up and running. Many are waiting for this to happen since the wish for green shipping is big. Leading container-shipowners want to run faster than regulations and say that they must be 100 percent neutral before 2040. They have realized what a competitive advantage it is, says Claes.

Since most of the shipping companies do not have alternatives for oil and they do not buy fuels on long-term contracts, there are opportunities for a new stable electric fuel market. FlagshipONE in Örnsköldsvik is estimated to give an annual production of 50.000 tonnes of e-methanol.

- The industry is in great need of reducing its climate footprint. We know that there is a need for half a million tonnes annually from 2025, but that will grow significantly. By 2026, our calculations say that the need is up to 1.000.000 tonnes and by 2030 the market will want at least 5 million tonnes. So now it is important to speed up and build up production capacity. We are working on recruiting staff and finding suitable locations to build our next facilities, says Claes.

Openness And Will at Övik Energi

A project director for the second facility has already been hired. Liquid Wind has become more aggressive in its investment strategy and believes that, within 5-8 years, the large shipping companies have chosen who will be the leader in electrical fuel.

- By then we want to be one of the biggest players in the world, Claes states.

When the interview is conducted, the 23^rd co-worker has been hired and Claes estimates to have closer to 100 colleagues within three years.

What was behind the decision about Örnsköldsvik?

- We found an openness and a will to try something new at Övik Energi. After all, it requires a lot of courage and confidence when a start-up comes from Gothenburg and says that will drill holes in a chimney and take out your carbon dioxide, he says.

FlagshipONE is planned close to Hörneborgsverket, a combined heat and power plant which uses biofuels and is owned by Övik Energi. A cooperation has been initiated and the carbon dioxide will be gathered at the plant.

- The key for us is that it is a plant that emits biogenic carbon dioxide, that it runs on fuel that is organic. For that, pulp milling is a good industry as well as combined heat and power plants based on biomass, he says.

The Giants Believe in Electric Fuel

Liquid Wind is in dialogue with industries in all the major cities along the coast of Northern Sweden, from Gävle to Karlsborg to find a location for the next facility.

- We have been looking around several other places and initiated dialogues with possible partners where there is biogenic carbon dioxide and the advantage of lower rates for electricity. Everyone who wants and is interested can get in touch and now we are initially hoping for the green light to start construction in Örnsköldsvik this summer, says Claes.

In addition to Alfa Laval and Uniper, the Danish energy giant, Ørsted, has joined as a partner at the beginning of 2022. Ørsted is above all a major player when it comes to developing, building, and operating offshore wind farms.

- It has been a very important part to work closer to these great players. Ørsted’s interest shows how far we have come, and their commitment is proof of the key role that electric fuel will play in the green transition, says Claes.

FACTS

Liquid Wind was founded 2017 by engineer Claes Fredriksson who has a Chalmers background and 20 tears experience in cleantech. Today, 23 people work for Liquid Wind.

The first facility is planned in the northern Swedish town, Örnsköldsvik, and is estimated to cost SEK 1.5 billion. The investment is called FlagshipONE and the consortium behind the projects includes Siemens Energy that will supply electrolysers as well as automation and digitization, Alfa Laval, a world leader in heat transfer, British Carbon Clean Solutions which manufactures carbon dioxide capture, Danish chemical engineering company Haldor Topsoe, Worley from Australia, the constructor of the facility and the EPC.

In 2021, Liquid Wind was named one of the top five energy start-ups in the globe by StartUs Insights. For more information, visit  liquidwind.se or follow Liquid Wind on LinkedIn or Twitter.