Swedish eFuel developer Liquid Wind and German energy group Uniper have signed a strategic partnership agreement to boost eFuel facilities’ development for fossil-free eMethanol production.
The partnership will see Liquid Wind and Uniper combine their competencies to drive commercial-scale development of eFuel facilities while reducing costs and risks and developing the supply chain.
Specifically, the companies plan to conduct and evaluate opportunities for collaboration in facility development, power supply, and offtake of eMethanol, complementing Liquid Wind’s ongoing development business.
The key focus of this strategic partnership, eMethanol, is described as a vital component for decarbonizing hard-to-abate sectors, such as global shipping. eMethanol is produced through a synthesis of green hydrogen and biogenic carbon dioxide and has the potential to significantly reduce emissions in hard-to-abate sectors.
As disclosed, Liquid Wind’s role in this collaboration may include the development services of Uniper’s future eFuel Facilities. In turn, Uniper could deliver fossil-free electricity to future facilities being developed bu Liquid Wind and also procure eMethanol for commercial distribution.
In addition, the strategic partnership supports Liquid Wind’s market strategy to develop and deploy eFuel facilities and expand globally.
Johan Svenningsson , Country Chairman of Uniper Sweden, said: “We can accelerate the necessary transformation together by increasing our cooperation through this strategic partnership. Producing fossil-free liquid fuels, so called eFuels, is of strategic importance for succeeding with the green transformation. One of the main sectors to decarbonize is the transportation sector, land-based, air-based and maritime. This is a vital part of Uniper’s strategy.
“The Swedish power system is basically fossil-free; now, we are taking steps to make the whole Swedish energy system less dependent on fossil fuels. Sweden has excellent opportunities for leading this development and our partnership with Liquid Wind puts us right at the forefront.”
In Sweden, Uniper is developing its sustainable eFuel project NorthStarH2 in Östersund.
Claes Fredriksson , CEO and Founder of Liquid Wind, commented: “Decarbonization requires committed collaboration across the value chain to reach the results that will contribute to reducing global warming. By entering this strategic partnership, we combine our companies’ strengths to drive and enhance execution and the green transition. We look forward to further strengthening our collaboration with Uniper which we initiated back in 2020.”
Liquid Wind’s first electrofuel project FlagshipONE was acquired by Danish offshore wind developer Ørsted in December 2022. The construction of the facility in Örnsköldsvik, Sweden, began in May 2023.
The second plant, FlagshipTWO , is being developed in Sundsvall with production planned to start at the end of 2025.
FlagshipTHREE is located in Umeå, north-east of Sweden, and is scheduled to enter the construction phase in 2024, with the facility expected to be operational in 2027. The planned production capacity is estimated at 130,000 tons of green electrofuel per year.
Through the partnership with Alfa Laval, Carbon Clean, Siemens Energy, and Topsoe, Liquid Wind plans to develop and market ten additional eMethanol facilities in the Nordics by 2027 .