Modvion has signed a grant agreement with the European Commission under the EU Innovation Fund for up to €39.1 million. The funding is to scale up production and establish volume manufacturing for their modular wind turbine towers made of wood.
The EU Innovation Fund is one of the world’s largest programmes for the deployment of innovative low-carbon technologies. With European energy security and domestic manufacturing firmly on the political agenda, the fund is backing solutions that rely on materials sourced from within its own borders and strengthen wind power manufacturing capacity.
A transformative milestone for wind energy
This grant agreement represents a decisive step in Modvion’s journey from proven technology to industrial scale. The funding will support the establishment of a volume manufacturing facility in Trollhättan, Sweden, which is expected to reach full production capacity by 2031.
The Trollhättan facility will be the first serial production facility for wooden wind turbine towers in the world. It will deploy a highly innovative tower technology utilising laminated veneer lumber (LVL), an engineered wood product manufactured with a unique composition. Over ten years of operation, the facility is expected to manufacture approximately 1,500 towers, avoiding around 18 million tonnes of CO2 equivalent in greenhouse gas emissions. The installed turbines would produce an estimated 29,000 gigawatt hours of renewable energy per year, enough to power approximately 7.3 million average EU households.
This agreement with the European Commission is a landmark moment for Modvion and for the wider wind energy industry. It validates both the commercial potential and the strategic importance of what we are building. This funding is key for us to move from demonstration to scale and begin delivering wooden towers to the market at the volume the energy transition demands.” – Maria-Lina Hedlund, CEO Modvion
Funded by the European Union under grant agreement 101252280. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Climate, Infrastructure and Environment Executive Agency (CINEA). Neither the European Union nor the granting authority can be held responsible for them.
For more information, please contact:
Maria-Lina Hedlund, CEO, Modvion: +46 (0) 76 250 2590, marialina@modvion.com
Press photos
High-resolution press images from Modvion can be found here.
About Modvion
Modvion is a Swedish company at the forefront of wood technology, with a patented wind turbine tower made from engineered wood. By replacing emission-heavy materials such as steel and concrete, Modvion’s wooden towers deliver significant reductions in carbon emissions. Thanks to a patented modular design, the towers are easy to transport and enable cost-effective, taller turbines that increase energy production and financial returns. In partnership with Vestas, the world’s largest wind turbine manufacturer, Modvion erected its first commercial wooden tower in 2024, which has now been operating successfully for more than 15,000 hours.
About Innovation Fund
The Innovation Fund is one of the world’s largest funding programmes for the deployment of innovative net-zero and low-carbon technologies. Established by Article 10a (8) of Directive 2003/87/EC to support innovation across all EEA Member States, it is one of the key tools of the European Green Deal Industrial Plan.
Financed by revenues from auctioning allowances from the European Union Emissions Trading System (EU ETS) and with an estimated revenue of approximately €40 billion between 2020 and 2030, the Innovation Fund aims to help businesses invest in clean energy and bring technologies to market that can decarbonise European industry, while fostering its competitiveness.
The Innovation Fund awards grants through regular calls for proposals and competitive bidding procedures (auctions).
