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Liquid Wind

Reusing carbon dioxide to produce local, climate friendly liquid fuel

Liquid Wind converts carbon dioxide (CO2) and wind energy to liquid fuel. The company develops facilities to reduce carbon footprint and generate revenue by replacing fossil-fuel. Liquid Wind is currently developing its first facility in Sweden.

The company plans to rapidly build five more facilities in Scandinavia before expanding internationally. As facilities around the world adopt the Liquid Wind solution, CO2 levels will be reduced.
 
Liquid Wind has assembled a world class consortium with companies that collectively have 375-years experience from solving challenging problems. Join them now on their mission to make the world a cooler place!

Investor proposal

Liquid Wind is the leader in Carbon Capture Utilization (CCU) in Sweden and has assembled the best team available in the sector today.
 
By joining Liquid Wind you will be part of the solution, you will receive updates every two months and have the chance to make a 4x return in 4-6 years. If we jointly succeed, you can proudly tell your kids or grandkids, that you played an important part in getting e-methanol going in Sweden, Scandinavia and hopefully beyond.
Shares in LW Community AB, holding company will be offered to the investors.
LW Community AB will hold shares in Liquid Wind AB. Shares in LW Community AB will hold the same value as the shares in Liquid Wind AB (Issue price SEK 1000)

Product

The problem this product solves

Carbon dioxide (CO2) emission is one of the biggest challenges our planet is facing today. If we continue on the current path, temperatures will rise and we will face lots of (climate) difficulties. The biggest emitter today is fossil fuel, used for transportation and power generation.

We therefor urgently need to:
1) Reduce our generation of CO2 drastically, and
2) Rapidly change the type of fuel/energy we use

How the product solves it

Liquid Wind has developed a method that converts waste CO2 and renewable (wind/solar) energy into pollution free liquid fuel. The company is currently developing the first facility in Sweden with a plan to rapidly build five more facilities in Scandinavia before expanding internationally.

Benefits:
1) Carbon dioxide is captured from large CO2 emitters and re-used to produce liquid fuel
2) The clean liquid fuel can be used to replace fossil fuel, like gasoline and diesel

This renewable fuel, also called e-methanol, will likely become the future standard both for ocean transport, land transport, and as a chemical feed stock/raw-material.

Product features

Liquid Wind´s carbon neutral fuel, e-methanol, is created by capturing carbon dioxide (CO2) from the point sources and producing hydrogen (H2) from renewable electricity and water. By mixing CO2 and H2 under pressure the liquid fuel is created. E-methanol also contains less air polluting substances (no Sox and low Nox) which eliminates the need for costly emission scrubbers or filters.

CO2 + H2 = CH30H

Carbon Dioxide + Hydrogen = e-methanol

E-methanol is a clean burning fuel and it is good for the climate.

Product use cases

E-methanol will replace fossil fuel in many transport and shipping applications. Liquid Wind is in contact with large shipping companies and ferry operators that are in the early stages of becoming e-methanol clients.

Cruise ship companies value e-methanol, as it fullfils the demands/restrictions from Norway and eliminates particulates which create a black dust on ship decks. E-methanol can be stored very effectively on-board, maximizing the space available for paying cargo and passengers.

The trucking market is another large segment that e-methanol can serve. The market will grow gradually and will eventually reach 2 millions tons of fuel only in Sweden.

Team

Claes Fredriksson avatar
Claes Fredriksson CEO
Claes has been working to mitigate climate change for the past 15 years by developing innovative renewable energy solutions. He is the co-founder of five companies in the cleantech field and has lived and worked in North America, Asia, and Europe. Recently, he initiated the creation of "Taking Charge", a ... See more
Claes has been working to mitigate climate change for the past 15 years by developing innovative renewable energy solutions. He is the co-founder of five companies in the cleantech field and has lived and worked in North America, Asia, and Europe. Recently, he initiated the creation of "Taking Charge", a novel high-speed electric vehicle charger which launched in April 2019. In 2017, he started Liquid Wind after completing a joint feasibility study with nine organizations including Wallenstam, Carbon Recycling International, Göteborg Energi, Rise and Siemens. Claes enjoys being on the forefront of energy systems development and tends to spot trends early on. He holds a Master of Science from Chalmers University of Technology and started his career with Tetra Pak in Hong Kong. See less
Christina Thulin avatar
Christina Thulin Communications & Human Well being Director
Christina is a communication strategist who has worked with branding, PR, marketing and communication for 27 years, in both listed and unlisted companies. Christina has a passion for people and how employees through engagement can contribute to companies’ goals. She has worked many years with combining company culture, values and ... See more
Christina is a communication strategist who has worked with branding, PR, marketing and communication for 27 years, in both listed and unlisted companies. Christina has a passion for people and how employees through engagement can contribute to companies’ goals. She has worked many years with combining company culture, values and branding to ensure the team/company reaches the targeted image and a vision. See less
Thomas Stenhede avatar
Thomas Stenhede Senior Projects Advisor
Thomas graduated from Chalmers University of Technology with a Master of Science. Thomas initially worked at Swedyards selling petrochemical plants e.g ammonia-urea and methanol. When the opportunity was presented to develop a floating, barge-mounted methanol plants together with Haldor Topsoe A/S in Denmark, Thomas was quick to join. In the ... See more
Thomas graduated from Chalmers University of Technology with a Master of Science. Thomas initially worked at Swedyards selling petrochemical plants e.g ammonia-urea and methanol. When the opportunity was presented to develop a floating, barge-mounted methanol plants together with Haldor Topsoe A/S in Denmark, Thomas was quick to join. In the 80’s he worked at Götaverken Energy Systems as project manager for CFB-boilers & black liquor boilers and later on he started to work as an energy consultant for development of biomass power plants. In 1994 Thomas joined Wärtsila where he stayed for 20 years until his retirement. In 2015 with 45 years’ experience, he teamed up with ScandiNAOS to develop the world’s first methanol driven pilot vessels. In 2017 Thomas joined Liquid Wind to focus on process design and applications for methanol as a fuel and basic chemical. Thomas is originally from Stenungsund, so he has both the local area knowledge and the technical knowledge related to methanol production and usage. See less
Roy Svantesson avatar
Roy Svantesson Construction Director
Roy’s has experience from various managerial positions and functions such as project manager, nationally and internationally. Since 1984, Roy has been working in various strategic management positions and in management teams with responsibility for staff, finance, administration and market, as well as responsibility for market development, organizational development and business ... See more
Roy’s has experience from various managerial positions and functions such as project manager, nationally and internationally. Since 1984, Roy has been working in various strategic management positions and in management teams with responsibility for staff, finance, administration and market, as well as responsibility for market development, organizational development and business development. He has worked as: Business Area Manager at Midroc Project Management and Grontmij AB, Plant Design Manager at Kvaerner Pulping AB and Plant Design Manager and Section Director at Benima AB. He has accumulated 40 years of experience from process and petrochemical industry, the energy sector and renewable energy. International projects include; Eka Nobel de Venezuela, Fayetteville Waste to Energy (WtE), Chang Mai WtE, Baldovie WtE and Sogama WtE. In May 2018 Roy joined Liquid Wind with focus on Project and Construction Management. It is up to Roy to ensure that FlagshipONE gets built on time and one budget…with the support of the rest of the team. See less
Tuya Bold avatar
Tuya Bold Investor and partner relations
Tuya is an experienced finance professional with a passion for sustainability and impactful business. Tuya has led and worked with both private and public institutions, in Sweden and internationally. She currently consults for Liquid Wind while she concludes her position as Head of Finance at Hem Design studio (Hem.com).

Market

Target Market

Liquid Wind will complement fossil fuel like diesel, gasoline and heavy fuel oil. Normal fossil-based methanol will also be replaced as the market becomes willing to pay premium for a green alternative.

The initial market will be low blend gasoline where a government mandate forces the fuel distributors to blend a renewable alternative into gasoline. This market in Sweden is 120,000 tons annually. Next is fuel to the coastal shipping industry where there is a green requirement.

The first Liquid Wind facility will produce up to 45,000 tons per year. The potential market in Sweden is 2 million tons.

Competitive landscape

As Liquid Wind is developing a new product with a new process in a new segment of the market, it is hard to speak about competitors in the conventional way.
 
For a similar product, bio-methanol, the closest existing production site is in the Netherlands. Within Sweden, ‘’Södra’’ is developing the capacity to produce a small volume of bio-methanol made from a waste product in the pulp production process. That plant will be completed in 2020.
 
Other substituting products are different types of biofuels and of course the alternative for light transport is electric cars and light electric trucks. 

Unique differentiator from competitors

Liquid Wind is the only developer preparing for multiple e-methanol plants. Liquid Wind is 100% focused on building facilities that produce renewable fuel. Other fuel producers focus on fossil fuel production and are doing a small portion of renewable fuel. Biofuel producers need a biological resource to make fuel and will be limited by the availability of this feedstock (like HVO (a biodiesel product) is currently hitting its upper volume capacity). Liquid Wind only needs electric energy and waste CO2 to produce fuel. This can be found almost anywhere and in large volumes.

Company revenue streams

The business model for Liquid Wind includes generating revenue from selling the fuel and from servicing and operating the facilities. The process selected will allow the facility to run 7500 hours per year, which means a production volume of about 44,000 tons. The annual sales value for this will be approx. SEK 260,000,000. The operating income from production at this utilization rate will be SEK 60,000.000. In the future the plant could run more or fewer hours depending on the cost of the electricity. The plan is to sell 80% of the facility to investors and manage the operation long-term.

Product/service distribution

Liquid Wind will focus on 3 segments. Those segments are 1) marine fuel 2) feedstock for the chemical industry including RME (fuel supplement) and 3) low blend gasoline.
 
Suitable channels to reach these segment are:
  1. Direct - Liquid Wind trades directly with large clients (a single client can purchase 20-40% of the volume).
  2. Through methanol traders - 3 major traders exist in the world that Liquid Wind will deal with
  3. Through fuel distributers. Liquid Wind will sell to the fuel distributer who will sell a blended fuel through their retail outlets.
 
Generally deals are made as 5-10 year off-take agreements.

Execution

Previous milestones/traction

  • Completed Feasibility Study Apr2017
  • Incorporated Company June2017
  • Established Advisory Board Oct2017
  • Received 5 letter of intents (LOIs) signed by clients and investors Nov2017
  • Organized e-methanol partner ship meetings with Volvo, Scania and more Nov/Dec2017
  • Established collaboration with key supply and client organisations in Feb2018
  • Decided on land/location for first production plant Apr2018
  • Launched Consortium building phase with ten leading partners June2018
  • Selected Consortium partners Dec2018
  • Organised high-level meeting with government Jan2019
  • Signed collaboration agreements COWI Technical consultants Feb2019
  • Signed agreement with Axpo - a large power trader Mar2019
  • Enrolled three more colleagues, an increase of 100% in Mar/Apr2019

Next key objectives

  • Start basic engineering and permitting phase Apr 2019
  • Complete Series A investment May 2019
  • Incorporate FlagShipONE AB, the first production company Jun 2019
  • Sign off-take agreements for 80% of plant production Dec 2019
  • Complete basic eEngineering and permitting phase Jun 2020
  • Complete fundraising for FlagshipONE (the name of the first facility) Apr 2020
  • Make Final Investment Decision (FID) Jun 2020
  • Complete construction of FlagshipONE Sep 2022
  • Deliver first e-methanol Oct 2022

Previous Financing

Liquid Wind performed feasibility study in 2016 and 2017 with support from 9 organisations and funding from VGR (Västra Götalandsregionen) och Fyrbodals kommunalförbund. The study showed that profitable electro-fuel facilities can be developed and built in Sweden, if the size is large enough.

Liquid Wind AB is completing the initial funding round with investors by May 7. Respons is positive among suppliers/consortium members and financial investors. The company is well on the way to raise 12,5 million SEK by May.

Use of funds

Basic Engineering and Permitting Phase; 50%
Engineering the facility and ensuring that permits can be obtained are the most important steps moving forward. These step will take 12-15 months.

Bring in key skills/experts and build the organisation; 10%
Being able to hire an additional 3 people (already identified) will give Liquid Wind the power to move forward according to plan.

Secure off-take agreements (sell future production capacity) and financing; 40%
Ensuring that future customers commit to the electro-methanol and sign up for 10-year deals.

The funds raised though FundedByMe will complement funds raised through suppliers, financial investors and government support.

Return on Investment

Investors will be able to do an exit on their investment when the first facility has been built and is operating according to plan. If the business develops as anticipated the valuation at the time of exit is targeted to be 4x. The exit can be done as a buy-back of shares by Liquid Wind, alternatively the exit may be done as a trade sale or a public offering.

Risk Analysis

The immediate risk is that the company cannot execute on the schedule for plant financing and start construction of the facility within the 15-18 months planned. Furthermore, permits required might take longer than planned to be approved. In either case there will likely be a delay in construction.

Other developers choose to focus on the same product and similar geography. While it is beneficial that others are developing the market it may affect cost of input material. To minimize this risk, Liquid Wind will work with the best partners/suppliers. They will deliver the most efficient processes and fastest roll-out strategy.