The Swedish Energy Agency awarded the financial support under Industriklivet, a government programme aimed at helping industries reduce carbon emissions.

Liquid Wind’s facility is expected to produce 100,000 tonnes of e-fuel per year by combining green hydrogen and biogenic CO2. The plant will also link with Övik Energi’s biofuel-powered CHP facility to form an efficient, circular energy system.

They aim to cut 200,000 tonnes of CO2 emissions annually through the plant, which will help decarbonise hard-to-abate sectors such as shipping, aviation, and chemicals.

“[The funding] represents a strong commitment from the Swedish government that not only accelerates the transition to fossil-free e-fuel production in Sweden but also sends a powerful signal to international investors and offtakers,” explained Liquid Wind’s CEO and founder, Claes Fredriksson.

“It’s a clear endorsement of our vision to scale local and resilient e-fuel solutions in Europe,” he added.

Liquid Wind is working on multiple e-fuel projects across Sweden and the Nordics, including its 100,000 tonne per year NorthStarH2 initiative with Uniper, and its FlagshipONE project.

Last year, Fredriksson told H2 View that the FlagshipONE plans “aren’t dead in any way,” but added that he hopes to find a new owner and continue construction despite Ørsted’s cancellation.

He acknowledged that while demand exists, high costs and lack of political support remain key obstacles, highlighting broader challenges facing e-fuel initiatives.