Kvasir Technologies Raises €10 Million to Scale Climate-Neutral Marine Biofuel

Danish biofuel startup Kvasir Technologies announced a €10 million Series A funding round to accelerate commercialisation of its climate-neutral marine biofuel technology, derived from non-edible lignin-based agricultural and forestry residues. The round also includes a new strategic partnership with European Energy to launch KVEEN Biofuels, a commercial-scale plant development venture.

Kvasir's solvothermal liquefaction process converts lignocellulosic biomass — the most abundantly available biomass waste material — into refined marine biofuel, retaining more than 80% of the combustible energy originally in the biomass. The process is feedstock agnostic, creating significant scalability potential, and offers the possibility of more than 100% CO2 reduction due to carbon sequestration in biochar. The biofuel can be used as a direct replacement for fossil marine fuel without engine or infrastructure modification.

Shipping is one of the hardest sectors to decarbonise, accounting for approximately 3% of global GHG emissions, with limited commercially available low-carbon fuel alternatives at scale. Kvasir's technology addresses both the supply constraint and compatibility requirement by producing a drop-in biofuel from waste materials. The maritime sector faces increasing regulatory pressure from the International Maritime Organization's decarbonisation strategy and the EU's FuelEU Maritime regulation, both of which are creating demand for scalable low-carbon marine fuels.

Proceeds from the financing will fund expansion of Kvasir's test facility in Fredericia, Denmark, which can produce up to two tonnes of biofuel per day, and advance development of a first commercial-scale plant in Aabenraa, southern Jutland. The round included participation from European Energy as a new investor and existing investors including the Export and Investment Fund of Denmark, Mærsk Growth and Footprint Fund. CEO Joachim Bachmann Nielsen noted that the investment enables the company to take the next crucial steps in scaling a technology with strong potential for real climate impact in maritime transport.

Key figure — More than 80% of biomass combustible energy retained in Kvasir's biofuel output