Kvasir Technologies announced that it has raised €10 million in Series A financing to accelerate the scale-up and commercialization of its climate-neutral marine fuel.
European Energy joined the round as a new investor and strategic partner, alongside existing investors EIFO, Mærsk Growth, and Footprint Fund.
The financing will support the development and design of a new commercial production plant and help scale Kvasir Technologies’ climate-neutral drop-in fuel for use in existing vessels.
Kvasir Technologies is a Danish biofuel startup and spin-out from research at the Technical University of Denmark. The company has developed technology that converts non-edible lignin-based residues from agriculture and forestry into refined biofuels for shipping.
The company said its biofuel can serve as an immediate replacement for fossil marine fuel without requiring modifications to ship engines or changes to existing infrastructure.
As part of the partnership, European Energy and Kvasir Technologies are establishing KVEEN Biofuels, which is working toward the construction of a commercial-scale plant using Kvasir Technologies’ patented technology.
The new funding will also support scale-up work at Kvasir Technologies’ test facility in Fredericia, Denmark, which can produce up to 2 tonnes of biofuel per day.
Development work will also begin on the company’s first commercial plant in Aabenraa in southern Jutland. The plant is expected to demonstrate the technology at industrial scale.
Kvasir Technologies said the investment comes during a challenging funding environment for climate tech startups, but the company attracted investor support due to the maturity of its technology, commercial prospects, and path to commercialization.
KEY QUOTES:
“This investment round enables us to take the next crucial steps in developing and scaling our technology. At the same time, it underlines that there is still strong support for solutions that can deliver real climate impact in the maritime sector.”
Joachim Bachmann Nielsen, CEO of Kvasir Technologies
“What will be decisive for Kvasir’s technology is that, through innovation and scaling, we achieve attractive price points for customers and thereby secure long-term offtake agreements before construction begins. We have some experience with that process and look forward to the collaboration.”
Knud Erik Andersen, CEO of European Energy
“With European Energy, we gain a partner with proven experience in developing and financing energy infrastructure at scale. This reduces the risk of our first commercial plant and accelerates our route to market.”
Ulrik Falkenberg Lending, CCO of Kvasir Technologies
“Kvasir Technologies represents a technological solution with strong potential to reduce CO2 emissions in one of the hardest sectors to decarbonize. The combination of scalable technology, a biofuel that can be used in existing fleets and strong partnerships makes the case particularly attractive.”
Sara Sande, Partner and Head of Thematic Venture Investments at EIFO
