Danish biofuel startup Kvasir Technologies announced today that it has raised €10 million (USD$11.1 million) in a Series A funding round, with proceeds from the financing to be used to accelerate the commercialization its climate-neutral marine fuel technology.
Alongside the financing, Kvasir announced a new strategic partnership with European Energy, who joined as a new investor in the round, to launch KVEEN Biofuels, a company focused on developing a commercial-scale plant to produce biofuels using Kvasir’s patented technology.
Founded in 2018 as a spinout from the Technical University of Denmark by COO Anders Bak Kristoffersen and CEO Joachim Bachmann Nielsen, Kvasir has developed a technology to convert a wide range of non-edible lignin-based residues from agriculture and forestry into refined biofuels for shipping.
According to Kvasir, the company’s biofuel conversion process, called solvothermal liquefaction, is the only process that can fully convert lignocellulosic biomass, the earth’s most abundantly available biomass waste material, to produce marine biofuel, making it one of the most efficient biofuel pathways, with more than 80% of the combustible energy originally contained in the biomass retained in the bio-oil. The company added that the technology has the possibility for more than 100% CO2 reduction, due to carbon sequestration in biochar. The process is also feedstock agnostic, creating significant scalability potential.
Additionally, the company said that its climate-neutral biofuel can serve as a direct replacement for fossil marine fuel without the need to modify ship engines or existing infrastructure.
The company said that the proceeds from the financing will be used to expand operations at its test facility in Fredericia, Denmark, which can produce up to two tonnes of biofuel per day, and to advance development of its first commercial-scale plant in Aabenraa, southern Jutland, which will demonstrate the technology at industrial scale.
Joachim Bachmann Nielsen, CEO of Kvasir Technologies, said:
“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.”
The funding round included participation from European Energy as a new investor, alongside existing investors the Export and Investment Fund of Denmark (EIFO), Mærsk Growth and Footprint Fund.
Sara Sande, Partner and Head of Thematic Venture Investments at EIFO, said:
“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.”
