Liquid Wind and TSE join forces to develop e-fuel facility in Finland

Swedish e-fuel plant developer Liquid Wind and Finnish energy company Turun Seudun Energiantuotanto (TSE) have signed a memorandum of understanding (MoU) for the development of an e-fuel facility in Naantali, Finland.

The facility is planned to be adjacent to TSE’s local power plant, Naantali 4, which will deliver biogenic CO2 and steam for the production of e-methanol, Liquid Wind revealed, adding that the process and waste heat of its own facility will be used for district heat, reducing the share of incineration-based district heat production by TSE.

Once operational, the e-fuel facility is expected to produce 100,000 tons/a of e-methanol made from green hydrogen and biogenic CO2. The final investment decision (FID) is planned for 2026, and the facility is expected to be operational in 2029.

Liquid Wind is the main project developer and has, reportedly, started the environmental impact assessment and permitting process. The parties will jointly explore the possibilities of ensuring a sufficient supply of renewable electricity to produce e-methanol.

Note that e-methanol is considered a versatile commodity that can replace fossil fuels in hard-to-abate sectors such as shipping and aviation while reducing CO2 emissions.

Claes Fredriksson, CEO and Founder of Liquid Wind, commented: “We are very happy to announce the development of our eFuel collaboration project with TSE. By entering this MoU, we are combining our companies’ strengths to promote and accelerate the clean energy transition both locally and globally. Locally, in the city of Naantali, we will focus on CCU and the reuse of CO2 and waste heat. Globally, we aim to support the transition by allowing our off-takers to shift from fossil fuels to low-carbon eFuel produced at this facility.”

Pertti Sundberg, Managing Director of TSE, and Timo Honkanen, CEO of Turku Energia Group, stated: “This is an important project for us to achieve the climate goals of our owners and to secure renewable district heating for the Turku region in the future. We are very pleased that TSE is involved in promoting concrete domestic hydrogen economy projects, supporting the creation of future energy systems. This agreement solidifies our cooperation with Liquid Wind and enables the production of renewable fuel in Naantali.”

Laura Leppänen, Mayor of Naantali, concluded: “This large investment project is an important step in the green transition of the former Neste harbor area which the city is committed to. Responsibility plays an important role in the city’s strategy, as does vitality. The Naantali eMethanol production facility fulfills both of our strategic goals.”

In other news, in December 2024, Liquid Wind signed a collaboration agreement with engineering company Samsung E&A to accelerate the development of e-fuel projects beyond Europe – in Asia, Africa and the Middle East. The deal aims to combine the companies’ expertise to evaluate collaboration in e-fuel facility development, extending Liquid Wind’s reach and ongoing business development.

Earlier, in November, Liquid Wind secured €44 million in Series C financing to support the development of e-fuel facilities. The raise, which is said to be one of the largest funding rounds in Europe for e-fuels in 2024, was led by Uniper, HYCAP Fund I SCSp and Samsung Ventures.

Liquid Wind said the financing will help meet the increasing demand for low-carbon fuels in the shipping industry and support the development of ten e-fuel facilities by 2027 as part of the company’s vision of reaching 500 facilities globally by 2050.