VÅR Ventures and Maersk Growth announce their investment into Danish biofuel company Kvasir Technologies to accelerate the path away from fossil fuel dependency
Kvasir Technologies, a Danish technology company developing a proprietary, cutting-edge process to produce carbon-neutral biofuel from non-edible biowaste material, has raised an investment round of EUR 2.15 million from lead investor VÅR Ventures with participation from Maersk Growth. With this investment round, Kvasir Technologies has raised nearly EUR 7 million this past year, including a EUR 2.5 million non-dilutive grant from the European Innovation Council (EIC) and various other project grants. The funding will be used to fast-track the realisation of the promising technology, and they expect this to be the last investment round before their Series A.
“We are proud and pleased about this investment from VÅR Ventures and Maersk Growth, respectively, as it truly validates the trust in our technology and cements its potential as an alternative to fossil fuels for the sectors most in need. We look forward to converting the investment into concrete initiatives as we work hard to scale our technology to mature it for the market”, says CEO Joachim Bachmann Nielsen, CEO, co-founder, and inventor of Kvasir’s technology.
With the UN Panel for climate change and IPCC’s warning of irreversible impacts of global warming in its latest report from March, we expect to see more alternative solutions and technologies to replace fossil fuels for the hardest to abate sectors sped up and brought to market as soon as possible.
“At VÅR Ventures, we aim to have a real impact on the achievement of the Paris Agreement’s target of limiting global warming through our investments. That is only possible if we reduce carbon emissions quickly, cost-efficiently, and sustainably. This is at the core of Kvasir’s technology, which is on a mission to help the shipping and marine industries abate 40 million tonnes of CO2 by 2030”, says Mette Fløe Nielsen, General Partner and Co-founder of VÅR Ventures.
“Scaling up production of low carbon fuels will play an essential role in achieving the decarbonisation targets of A.P. Moller-Maersk as well as the broader maritime industry. In Maersk Growth, we strive to accelerate this transition by identifying and supporting new innovative technology companies on the path towards commercial scale. Kvasir is a prime example of this, and we are excited to join them on this journey”, says Lasse Truels Köhler, Senior Associate at Maersk Growth.
Change the fuel. Not the engine
The International Maritime Organization (IMO) has set CO2 reduction targets of 40% in 2030 and 50% in 2050 for the shipping industry. That is a major challenge for the shipping industry due to the limited available technologies available in the market today. This is a challenge that Kvasir addresses directly with its solution that does not require retrofitting existing ships or investing in new fleets suitable for alternative fuels.
“Our technology makes it possible to swap fossil fuels directly with carbon-neutral biofuels produced from our IP in the future. That makes it easier for hard to decarbonise sectors because with our solution, you change the fuel, not the engine – that obviously makes the transition considerably more cost-efficient for the carriers, be it ships or aeroplanes”, says Joachim.
Beyond the marine sector, Kvasir is currently scale-testing its solution initially aimed at the maritime sector to develop sustainable aviation fuels. Kvasir’s solution, once proven scalable in large-scale production set-up, can be applied in more sectors.
Kvasir is currently designing its first demo plant to be built in Fredericia. It will have the capacity to produce 2,000 L per day. Once the scaled production from the demo plant is successful, the commercial scaling will begin.
Facts about Kvasir Technology
- Kvasir’s proprietary one-step process converts lignocellulose into a biofuel that can replace fossil fuel oil directly at a previously unseen high yield.
- The CO2 reduction happens mainly in two main ways (1) utilising and converting a bioresource that would otherwise contribute to greenhouse gases (e.g. unused straw) and (2) producing a CO2-neutral product that substitutes fossil products (e.g. in the maritime/aviation sectors).
- A comprehensive life cycle assessment (LCA) of Kvasir’s technology is underway.
- As an example, the potential in the marine sector is huge. The size of the global merchant fleet is 100,000+ ships. Of those, 98% still run on fossil fuels.
- Kvasir works closely together with several leading biofuels research institutions such as Bioeconomy Institute/Iowa State University, DTU Chemical Engineering/Technical University of Denmark, and AAU Energy/Aalborg University, Denmark.
- Kvasir has established partnerships with CrossBridge Energy, D/S Norden, Maersk Line, and Alfa Laval.
- Kvasir has 15 employees and plans to double in size over the coming year.
- Kvasir’s board members include Lars Erik Clausen, Chair (prev. CEO at Shell and EVP at IBM and Ørsted), and following this funding round, also Mette Fløe Nielsen, General Partner at VÅR Ventures, and Lasse Truels Köhler, Senior Associate at Maersk Growth.
VÅR Ventures
VÅR Ventures established 2022, invests in companies with sustainable business solutions and technologies solving the most immediate challenges the world is facing within energy, education, and the global food system. VÅR Ventures is founded by an impact-driven team with a proven track record in sustainability, tech, finance, and venture-backed by a unique pipeline and expert network.
Maersk Growth
Maersk Growth is the Venture Arm of A.P. Moller–Maersk – with the mission to digitise, democratise, and decarbonise supply chains. We invest in and partner with talented startups, scaleups, and visionary innovators. We support our portfolio companies’ strategic potential and generate value for A.P. Moller-Maersk by leveraging our core capabilities – our ‘ABCDE’ or Assets, Brand, Customers, Data and Expertise.
Kvasir Technologies
Kvasir Technologies is a Danish company that has developed a game-changing technology to produce climate friendly fuel for hard to abate industries. Kvasir converts non-edible waste-based biomass into a 1:1 substitute for fossil fuel in a simple, sustainable, and scalable way. Founded in 2018 by Joachim B. Nielsen and Anders B. Kristoffersen, Kvasir is a spin-out from the Technical University of Denmark. The company runs pilot activities in Denmark and in the US and plans to build its first demo plant in Fredericia, Denmark.
Source Kvasir Technologies