Vestas’ newly created venture capital arm Vestas Ventures has taken a minority shareholding in Swedish wood technology start-up Modvion.
As part of Vestas’ commitment to reduce carbon emissions across its supply chain by 45% per megawatt-hour delivered to the market by 2030, Vestas said it will use its role as an investor to support Modvion’s scale-up strategy.
Modvion specialises in the development and manufacturing of wind turbine towers made from laminated veneer lumber (LVL), a biocomposite material sourced sustainably from a supplier network, and validated to “uphold robust reforestation strategies”.
When compared directly with the value chain of a conventional steel tower, Modvion towers are expected to reduce carbon emissions by 80%.
The reduced weight of an LVL tower and lower CO2 intensity of the materials contribute to the overall reduction in CO2 emissions.
Vestas head of innovation and concepts Bo Svoldgaard said: “Vestas Ventures was established to nurture innovation that can help accelerate the energy transition, and our collaboration with Modvion has the potential to support this journey.
“The modular nature of Modvion’s design approach, and the possibilities for increased hub heights could contribute to a reduction in cost of energy for Vestas customers, along with increased ease of transportation in logistically challenged markets. Introducing an LVL tower variant could lead Vestas to become less reliant on steel prices, supporting our ongoing growth journey.”
Vestas has a long-term goal of integrating LVL towers into its design and manufacturing processes.
“We are excited to have Vestas onboard and for the chance to support the world’s leading wind turbine manufacturer in reaching its ambitious sustainability targets.
“To tackle the climate crisis, we need more renewable energy and increased use of sustainable, wooden constructions, and Modvion’s technology enables both,” said Otto Lundman, Modvion CEO.
Vestas Ventures was established in late 2020 as a corporate venture capital arm.