Swedish wood technology company Modvion has raised 125m Swedish krona to take its wooden wind turbine towers to the market. Among the investors this round are global wind turbine manufacturer Vestas, Almi Invest Greentech, the European Commission’s EIC Fund, Course Corrected VC and Symbia VC.
According to Modvion, 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.
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.
“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 Otto Lundman, CEO of Modvion.
“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.
“We are 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 am impressed with the team and look forward to being part of their continued journey.”
Modvion’s 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 competitive.