Swedish wood technology company Modvion has raised 125 million SEK to take its wooden wind turbine towers to the market. Leading global wind turbine manufacturer Vestas, Almi Invest Greentech, the European Commission’s EIC Fund, Course Corrected VC and Symbia VC invested in this round.
To fight climate change, we need more renewable energy, and increased use of sustainable, wooden constructions. This oversubscribed issue will allow us to take the next step in bringing our technology to the market and help the wind industry to build sustainable and cost-effective towers,” said Modvion CEO, Otto Lundman.
The new capital was raised through an oversubscribed convertible note issue. There was strong support from current shareholders, including Vestas Ventures, the corporate venture capital arm of Vestas, and the European Commission’s EIC Fund.
Modvion holds significant potential to increase sustainability within the wind energy industry. The modular tower technology also addresses a number of challenges when it comes to building taller turbines, which is an important element in producing the most energy,” said Todd O’Neill, CEO at Vestas Ventures.
They were joined by a consortium of new investors including Swedish climate-focused investors such as Almi Invest Greentech and Course Corrected VC, alongside Symbia VC, an Austrian corporate venture capital fund focused on innovation along the wood value chain. Among the participating investors were a group from Falkenberg, looking to support Swedish industrial initiatives.
We’re excited to invest in an innovative Swedish company reaching a global market with their unique solution that has significant climate benefits,” said Jörgen Bodin, Investment Manager at Almi Invest Greentech. “I’m impressed with the team and look forward to being part of their continued journey.”
Wood is a renewable material that enables radical reductions in emissions. Producing a wooden tower reduces emissions by 90% when compared to a conventional steel tower of the same height and load. Considering that wood is also storing carbon, the tower becomes carbon negative, since it is binding more CO2 than it emits during manufacturing.
Modvion’s patented technology enables taller towers and increased electricity production. Wind turbines are expected to double in size in the coming years, going from a global average of 3.4 megawatts to 6.6 by 2030. Significant markets in Europe are already well ahead of the curve and bigger wind turbines need taller towers, where Modvion’s solution is the most competitive.
The wooden towers are built in modules, which are easy to transport to sites that would otherwise be inaccessible. The modules are made using an engineered wood product called Laminate Veneer Lumber (LVL) that has a higher specific strength than steel, allowing for a lighter tower construction.
Using wood enables for radical reductions in emissions while enabling the industry to build taller wind turbines. The higher the tower, the more cost-effective it is to build with wood,” said Otto Lundman.
Modvion’s next milestone is building their first commercial installation later this year. The 2-megawatt wind turbine will stand at 150m total height, including the blades. Following that there are plans for a 6-megawatt wind turbine, one of the largest platforms used on land, while in parallel scaling up production capacity.
Facts on wooden wind turbine towers
Facts on wooden wind turbine towers can be found here.
For more information, please contact:
Sara Woodgate, Communications Manager, Modvion: +46 (0) 76 031 0450, sara.woodgate@modvion.com
Otto Lundman, CEO, Modvion, +46 702-72 06 24, otto@modvion.com
Kristian Holmelund Jakobsen, Communication and Press Officer, Vestas, +45 5221 1467, KRHJA@vestas.com
Jörgen Bodin, Investment Manager Almi Invest GreenTech, tel +46 72 20 52 679, mail jorgen.bodin@almiinvest.se
Christine Ahlstrand, General Partner, Course Corrected: +46735060689, christine@cc.vc
Press photos
High-resolution press images from Modvion can be found here.
About Modvion
Swedish wood technology company Modvion develops demanding designs made of laminated wood, nature’s carbon fibre, for large-scale applications. Wooden designs enable radical reductions in emissions by replacing emission-heavy material such as steel and concrete. Thanks to the company’s patented modular system, Modvion has been able to develop cost-effective wind turbine towers that enable more efficient transportation for installations of tall towers. The operation is part-financed by the Swedish Energy Agency, the Västra Götaland region and the EU program Horizon 2020 EIC Accelerator.
About Vestas Ventures
Vestas is the world’s leading producer of wind turbines and invested in Modvion through Vestas Ventures in 2021. Vestas Ventures was created to invest into external companies to challenge the status quo and support Vestas’ long-term vision to become the global leader in sustainable energy solutions.
About EIC Fund
The European Innovation Council Fund from the European Commission is an agnostic fund: it invests across all technologies and verticals, and all EU countries and countries associated to Horizon Europe. It provides the investment component of the EIC Accelerator blended finance. The EIC Fund aims to fill a critical financing gap and its main purpose is to support companies in the development and commercialization of disruptive technologies, bridging with and crowding in market players, and further sharing risk by building a large network of capital providers and strategic partners suitable for co-investments and follow-on funding. The fund pays particular attention to the empowerment and support of female founders as well as the ambition to reduce the innovation divide among EU countries.
In 2020, Modvion was granted a total of €6.5 million in funding through the EIC Accelerator programme. The funding consists of €2.4 million in grants and the remaining €4.1 million in equity. EIC Fund made their first investment in Modvion at the beginning of 2022 and are now effectuating a follow-on investment, approved by investment committee and currently in transaction closing.
About Almi Invest GreenTech
Almi Invest GreenTech (www.almiinvest.se/greentech) is a venture capital fund that invests in companies that reduce emissions of greenhouse gases and solve climate and environmental challenges. The fund manages EUR 65 million and has, since its inception in 2017, invested in 34 companies, two of which have made IPOs. They invest in energy, transport, industry, advanced materials, food, agriculture and forestry, recycling and circular business models.
About Course Corrected VC
Course Corrected is a climate focused Venture Capital fund. Together with the most visionary and passionate entrepreneurs Course Corrected wants to be part of solving one of our planet’s most pressing challenges – battling climate change. Course Corrected is backing outstanding entrepreneurs and teams with fast growing and scalable businesses that drive the transformation towards climate positive alternatives, disrupting incumbents and with the potential to become leaders in their respective markets.
About Symbia VC
Symbia VC is a corporate venture capital fund. It aims to be the pioneering partner for ambitious minds and thriving teams while offering a nourishing environment for creating a valuable future. Target industries range from climaTech, deepTech and constructionTech to logistics, industrialTech and automatization alongside the wood value chain. Symbia believes in supporting individuals who work relentlessly to change, improve, and initiate new thinking. They provide a supporting surrounding that enables redefining industry for the long run. With a mix of financial and industrial expertise Symbia strives to create a collective sustainable growth and a bright future for generations to come.
