Modvion

Modvion is a Swedish startup developing modular power towers using wood in a bid to replace concrete and steel as wind power tower building materials. According to the company, by using wood, logistical challenges regarding transportation and the need for bolts for reinforcements are eliminated. The company uses Laminated Veneer Lumber (LVL) for its towers, which is claimed to have higher strength per weight and higher strength per cost compared to steel alternatives, enabling the construction of much higher towers. The towers are suitable for both onshore and offshore applications.

Modvion’s towers are constructed as several 16–24 m cylinder modules, which are then stacked on top of each other similar to a traditional tower. At the end of the life cycle, the tower is dismounted and can be used for a variety of other building applications.

In December 2023, Modvion’s first commercial wind turbine tower began supplying electricity to the grid in Sweden. The tower stands at a height of 150 m and has a 2 MW wind turbine capable of supplying power to around 400 homes.

Key customers and partnerships

For the development of its towers, Modvion sources its LVL from Finnish wood product company Metsa Wood. In October 2022, Modvion entered into a collaboration with RES—an independent renewable energy company—to include Modvion’s towers in future wind energy projects. Modvion also entered into a partnership with RWE Renewable Sweden AB in March 2023 to supply wooden towers for RWE’s future onshore wind farms. Other partners of the company include Enel Green Power, Vattenfall, and Vestas.

Funding and financials

In its latest funding round in February 2023, the company raised SEK 125 million (~USD 12.1 million) in an oversubscribed convertible note issue, with the participation of Vestas, Almi Invest Greentech, the European Commission’s EIC Fund, Course Corrected VC, and Symbia VC. This brought the total funding raised by the company to USD 19.4 million. The funding was to be used for commercialization.

Key competitors: None comparable (Modvion's use of wood to construct wind turbines is unique)