European Funding for Wooden Wind Turbines

Swedish wood technology company Modvion has been selected by the European Commission to enter the preparation phase of the Innovation Fund Financing Agreement, according to a company press release. The grant of up to €39.1 million will be used to start series production of these wooden wind turbine towers.

The selection took place following an extremely competitive process, with 359 applications submitted. Modvion was chosen as one of 61 projects for which the Innovation Fund allocated a total of €2.9 billion, the company said. The selected projects are estimated to reduce greenhouse gas emissions by 221 million tons over a ten-year period.

Industrial Scale Production

“The grant from the Innovation Fund will enable Modvion to increase its production capacity to meet demand from the European wind industry. Our towers enable taller wind turbines to increase the efficiency and profitability of wind energy, while replacing steel and concrete,” said Maria-Lina Hedlund, CEO of Modvion.

With support from the Innovation Fund, Modvion will expand production to supply the growing onshore wind energy market. According to the company, the project will facilitate the serial production of wooden wind turbine towers with heights of up to 200 meters, designed for turbines of 6 megawatts and above.

European Strategic Context

The EU Innovation Fund is one of the world's largest funding programs for innovative low-carbon technologies. It supports projects with high potential to reduce greenhouse gas emissions and strengthen Europe's resilience through the production of clean technologies, according to official information.

“Growing renewable energy infrastructure and production is strategically vital for the EU. Modvion contributes to this development by bringing together two strong European industries: wood and wind energy,” added Maria-Lina Hedlund.

Modvion is now entering the GAP phase to finalize and sign the financing agreement with the European Climate, Infrastructure, and Environment Executive Agency (CINEA). The financing agreement is planned to be signed by the end of the first quarter of 2026, the company announced.