Danish cleantech company rakes in capital in run-up to flagship project — EnergyWatch

Danish company Kvasir Technologies, which has developed technology for the production of biofuel for ships and airplanes, has raised an additional EUR 3m in an extended seed round from the advisory and investment house The Footprint Firm and the state fund Eifo. 

This brings the total capital raised in Kvasir to EUR 11m, most of which has been raised within the last 18 months. 

Additional capital will be needed to realize Kvasir’s flagship project once the commercial production of biofuel has started. Here and now, the company is financed by its pre-commercial demonstration plant in Fredericia. 

”We are grateful for the support from Eifo and The Footprint Firm. The backing of the investors is crucial to accelerate the scaling and commercialization of our technological solution, which enables the replacement of the fuel only rather than the engine technology. This significantly simplifies the transition for the sectors that have the hardest time reducing their CO2 emissions and is far more cost-effective for carriers, whether it is the maritime sector or the aviation industry,” says Joachim Bachmann Nielsen, CEO and co-founder of Kvasir Technologies.

Maersk and Vår

In March last year, the company received investments from Maersk Growth and Vår Ventures, and with the new capital from Eifo and The Footprint Firm, the total seed round ended with around EUR 5 million raised. 

”It’s worth noting that we extended the round by more than we raised in the first round. We have raised additional capital for a very simple reason. There has been a huge amount of interest, especially on the back of us announcing the agreement with Maersk. At the same time, it is important to be well-capitalized in the market we are looking into now,” Nielsen points out to Stockwaveinsights’s Danish sister media, KapitalWatch.

He highlights several strengths of the current ownership group.

”What Eifo can do by virtue of its size goes without saying, and this is also true of the Export Credit Fund and the Green Investment Fund. At the same time, a company like The Footprint Firm is a major player in sustainability, consulting and ESG.” 

The next milestone for Kvasir Technologies in terms of raising capital will be the upcoming Series A round, which will make it possible to establish a factory, the first of its kind, for a demo production of biofuel.

2-3 years

”When we look into a Series A round, it is to make sure that we can fill the gap from this plant to reach a final investment decision on a first commercial plant. Such a decision is 2-3 years out in the future, and that is the timetable we are working with,” says Nielsen.

”A lot of engineering hours are needed to reach a final investment decision, which our A round will cover. But we are ambitious, and think it is urgent that our product comes out as soon as possible. We are dealing with a maritime sector that is desperate and knows there are no current solutions. Our solution could potentially decarbonize the entire existing fleet,” he emphasizes. 

At Eifo, there are significant expectations for the potential of Kvasir Technologies.

”Eifo’s main purpose is to support innovative Danish companies that can contribute to the green transition globally. Kvasir Technologies’ quest to replace fossil fuels in traditional ship and aircraft engines has the potential to be a game changer for the green transition in the industry.”

”With this investment, we are proud to support Kvasir Technologies in their efforts to demonstrate that sustainable biofuels can be produced on a large scale,” says Johan Bitsch Nielsen, Investment Manager in EIFO’s Green Transition team.

Also at The Footprint Firm, Director Mikkel Skytte Hejbøl calls Kvasir’s technology for developing biofuels groundbreaking and in line with the investment and advisory firm’s mission to support climate-positive innovation.

At the end of last year, The Footprint Firm had a portfolio of 18 companies that are a mix of physical products, software and deep tech.

The Footprint Firm was founded in 2019 on the premise that green transition can also deliver good financial returns. 

(This article was provided by our Danish sister media, KapitalWatch. Translated using DeepL with additional editing by Catherine Brett)