Danish biofuel startup Kvasir Technologies has raised EUR 10 million in a Series A funding round led by new investor and strategic partner European Energy to accelerate the commercialization of its climate-neutral drop-in marine fuel. The funding will support technology scale-up, development of a commercial biofuel plant in Denmark, and expansion of a fuel solution that can be used in existing vessel engines without modifications.
Søborg | June 18, 2026 – Danish biofuel innovator Kvasir Technologies has secured EUR 10 million in a Series A funding round aimed at accelerating the commercialization of its climate-neutral marine fuel technology, as the shipping industry intensifies efforts to decarbonize operations ahead of increasingly stringent emissions regulations.
The investment round attracted participation from renewable energy developer European Energy as a new investor and strategic partner, alongside existing backers EIFO – Export and Investment Fund of Denmark, Mærsk Growth and Footprint Fund.
The fresh capital will support the scale-up of Kvasir’s proprietary biofuel production technology, the expansion of its demonstration activities in Denmark, and the development of the company’s first commercial-scale production facility.
Strategic Partnership Targets Commercial Production
Alongside the funding announcement, Kvasir Technologies and European Energy revealed plans to establish a joint venture, KVEEN Biofuels, which will focus on advancing the construction of a commercial-scale biofuel production plant utilizing Kvasir’s patented conversion technology.
The partnership is expected to combine Kvasir’s fuel-production expertise with European Energy’s experience in developing, financing and operating large-scale energy infrastructure projects.
Joachim Bachmann Nielsen, Chief Executive Officer of Kvasir Technologies, said the investment represents a significant milestone in the company’s growth trajectory.
“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.”
Drop-In Marine Fuel for Existing Fleets
Founded as a spin-out from research conducted at the Technical University of Denmark, Kvasir Technologies has developed a process that converts non-edible lignin-based residues from agriculture and forestry into refined biofuels suitable for marine applications.
A key advantage of the technology is its ability to produce a climate-neutral drop-in fuel that can be used in existing vessel engines and fuel infrastructure without requiring costly modifications. The compatibility of the fuel with current fleets addresses one of the shipping industry’s major challenges, where vessel owners face substantial capital expenditure requirements and long asset lifecycles.
According to European Energy CEO Knud Erik Andersen, achieving commercial competitiveness will be critical to market adoption.
“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.”
Scaling Operations in Denmark
The newly raised capital will support further development at Kvasir Technologies’ demonstration facility in Fredericia, Denmark, where the company currently has production capacity of up to two tonnes of biofuel per day.
In parallel, planning and engineering work will commence for the company’s first commercial-scale production plant in Aabenraa, southern Denmark. The facility is intended to demonstrate the technology at industrial scale and serve as a foundation for broader market deployment.
Ulrik Falkenberg Lending, Chief Commercial Officer at Kvasir Technologies, highlighted the strategic value of the partnership with 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.”
Investor Backing Amid a Challenging Climate-Tech Environment
The funding round comes at a time when many climate technology startups continue to face difficult fundraising conditions amid tighter capital markets and increased investor scrutiny.
Despite these headwinds, Kvasir Technologies succeeded in attracting a strong investor syndicate, reflecting growing confidence in technologies capable of delivering immediate emissions reductions in hard-to-abate sectors such as maritime transport.
Sara Sande, Partner and Head of Thematic Venture Investments at EIFO, said the company’s technology presents a compelling decarbonization pathway for shipping.
“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.”
Growing Momentum for Alternative Marine Fuels
The investment highlights continued industry interest in scalable biofuel solutions capable of supporting shipping’s energy transition without requiring extensive fleet retrofits.
As shipowners evaluate pathways to comply with evolving international emissions targets, drop-in renewable fuels derived from waste and residue feedstocks are increasingly being viewed as a practical near-term solution alongside emerging alternatives such as e-fuels, methanol, ammonia and hydrogen.
For Kvasir Technologies, the successful funding round and strategic partnership with European Energy mark a significant step toward bringing its climate-neutral marine fuel technology from demonstration scale to commercial deployment, with Denmark set to serve as the launchpad for future international expansion.
About European Energy
European Energy is a Denmark-based renewable energy developer, builder and operator with activities across more than 25 countries. Established in 2004 and headquartered in Copenhagen, the company develops wind and solar power projects, Power-to-X facilities, and e-fuel production solutions that support global decarbonization and electrification efforts. European Energy has a strong track record in delivering large-scale energy infrastructure projects across Europe, North America, South America and Australia.
About EIFO
EIFO – Export and Investment Fund of Denmark is Denmark’s national promotional bank and official export credit agency. The organization supports Danish businesses through financing, investments and risk-sharing solutions aimed at accelerating innovation, exports and the green transition. With total commitments of approximately EUR 24 billion and activities spanning more than 100 countries, EIFO is also one of Denmark’s most active venture investors, backing startups, growth companies and venture capital funds focused on sustainable technologies and industrial development.
About Kvasir Technologies
Kvasir Technologies is a Danish cleantech company founded in 2018 as a spin-out from the Technical University of Denmark. The company specializes in converting non-edible lignocellulosic residues from agriculture and forestry into climate-neutral biofuels through its patented conversion technology. Its drop-in marine fuel can be used in existing ship engines and fuel infrastructure without modifications, offering a scalable pathway for maritime decarbonization. Kvasir currently operates a demonstration facility in Fredericia, Denmark, with production capacity of up to two tonnes of biofuel per day.
Source: Kvasir Technologies