Kvasir Technologies, EIC-backed liquefaction startup aiming to decarbonise heavy transport

Brussels, January 26th 2025

Summary

›Danish startup Kvasir Technologies says its patented liquefaction technology converts lignocellulosic waste into a bio-crude that can serve as a drop-in substitute for fossil marine fuels.
›The SEAFARER project received EIC Accelerator support which Kvasir says helped attract private equity for scaling and commercialisation.
›Kvasir signed a memorandum of understanding with Alfa Laval to co-develop separation and heat transfer solutions to upgrade bio-oil quality.
›The company secured a site partnership with Aabenraa Havn and is constructing a demonstration plant in Fredericia due to be completed later in 2025.
›Key uncertainties remain around feedstock supply, certification, lifecycle emissions, capital intensity, and market uptake despite the technology claims.

Kvasir Technologies: converting biomass into drop-in bio-crude with EIC backing

On the International Day of Clean Energy, Kvasir Technologies, an EIC Accelerator beneficiary, presented its case for replacing fossil fuels in heavy transport by turning agricultural and forestry waste into a carbon neutral bio-crude. The Danish clean-tech company promotes a one step liquefaction process that it says yields a bio-oil with values and specifications similar to conventional fossil oil. The company positions maritime fuel as the immediate low hanging fruit because the product can be used with minimal post processing.

How Kvasir describes the technology and its immediate markets

Liquefaction in alcohol:Kvasir characterises its process as a pressurised 'cooking' of biomass in alcohol that replicates in minutes the slow geological conversion that produces fossil oil. The firm calls the output a bio-crude or bio-oil and claims it resembles fossil crude in key properties so it can be handled and used in existing supply chains.

Lignocellulosic feedstock:The company focuses on lignocellulosic materials. These are non-edible plant wastes such as straw, wood residues, pruning and similar agricultural and forestry byproducts. Lignocellulose is abundant but requires preprocessing for consistent quality and logistics planning for reliable supply to plants.

Drop-in biofuel:A drop-in fuel is compatible with existing engines and fuel handling systems without major modifications. Kvasir claims its bio-oil is a 1:1 substitute for fossil marine fuel. That reduces switching costs but does not remove the need for regulatory approvals, bunkering standards, or independent fuel verification.

Kvasir highlights three market pathways. Short term the company targets the marine market where using a drop-in product simplifies adoption. Medium term the bio-oil can be co-fed into conventional refineries to green refinery outputs. Long term selective catalytic upgrading could produce climate neutral jet fuel and high value chemicals such as aromatics and bio-plastics.

Funding, the SEAFARER project and the role of the EIC

Kvasir coordinates the SEAFARER project which benefits from EIC Accelerator support. The company says the EIC backing was instrumental at the scaling stage where large volumes must be demonstrated before commercialisation. According to Søren Svanebjerg, funding manager at Kvasir Technologies, 'The funding from the EIC has triggered private equity investors to invest considerable funds to support the development towards commercialisation.'

EIC Accelerator:The EIC Accelerator is an EU instrument that provides blended finance and support to deep tech and high impact companies to scale innovations with market disruption potential. The scheme combines grants and equity investments and offers business acceleration services.

Kvasir also says it is expanding in-house engineering and project development capabilities to adopt a build own and operate model for future plants. Ulrik Falkenberg Lending, the company’s chief commercial officer, framed this as moving further along the value chain: 'This is the core of our organisational setup, with strong capabilities in R and D. In addition, we are expanding our capabilities in engineering and project development to move further into the value chain in order to build, own and operate our coming plants to produce our bio-oil.'

Partnerships and pilot plant development

Kvasir has recently reached two notable agreements. On 11 November the company signed a memorandum of understanding with Alfa Laval to cooperate on developing solutions for biofuel plants. Separately the company entered a partnership with Aabenraa Havn to secure a site for its first commercial production facility and is building a demonstration plant in Fredericia which it expects to finalise later in 2025.

Alfa Laval cooperation:Kvasir says Alfa Laval will contribute separation, filtration and heat transfer expertise. These process elements are central for upgrading bio-oil quality and improving plant performance. 'We see several areas of potential synergies between Alfa Laval and ourselves,' Lending said. 'Alfa Laval is uniquely positioned with their capabilities and various kinds of equipment on separation and filtration, and we will use this know-how to upgrade our bio-oil.'

Kvasir frames the Fredericia demonstration plant as first of a kind. The company has linked the site selection to port infrastructure for handling and distribution. The Aabenraa Havn partnership aims to anchor logistics and industrial connectivity for the commercial facility.

Technical and commercial challenges to watch

Kvasir presents a compelling narrative but several practical hurdles remain before the technology can have large scale industry impact. Below are the main risk areas that will determine whether the claims can be translated into durable market outcomes.

Feedstock availability and sustainability:Lignocellulosic residues are widely available in aggregate but can be geographically concentrated, seasonal, and variable in composition. Commercial plants need secure, cost effective supply chains and robust sustainability verification to ensure that sourcing does not compete with land for food or lead to adverse land use changes.

Lifecycle greenhouse gas performance:A technology that converts biomass into liquid fuels will only deliver climate benefits if the whole lifecycle emissions are low. That includes emissions from harvesting, preprocessing, transport, processing energy needs, and any co-products. Independent lifecycle analyses are needed to verify the claim of carbon neutrality.

Fuel quality and standards:Even for drop-in fuels, meeting international bunkering standards and maritime fuel specifications requires testing and certification from recognised bodies. Supply chain actors will want third party fuel verification to accept new fuels at scale.

Capital intensity and project risk:Building and operating biofuel plants is capital intensive. While EIC grants and private equity injections help, further investment rounds may be necessary. The company’s stated intention to build own and operate plants concentrates commercial and operational risk within the firm.

Market adoption and bunkering logistics:For the marine sector, bunkering infrastructure and commercial contracts will dictate uptake. Shipping companies and fuel suppliers often require long term assurances of fuel quality, volume and price competitiveness.

Milestones, partners and timeline

Milestone	Partner or stakeholder	Expected date	Notes
SEAFARER project supported by EIC Accelerator	European Innovation Council	Ongoing by 2025	EIC grant cited as enabling private equity follow on funding
Memorandum of understanding on equipment and plant solutions	Alfa Laval	Signed 11 November 2024	Focus on separation, filtration and heat transfer to upgrade bio-oil
Site partnership for commercial facility	Aabenraa Havn	Agreement 2024	Secures port-linked industrial site for future plant
Demonstration plant construction	Kvasir Technologies	Finalisation later in 2025	Located in Fredericia and described as first of a kind

Why this matters to EU decarbonisation and policy context

Heavy transport and maritime shipping are central to EU and global decarbonisation agendas. The International Maritime Organization set emission reduction targets for 2030 and 2050 that require fuel and operational changes. EU support schemes such as the EIC are designed to de-risk innovations that might help meet these goals. If a technology can truly deliver a scalable, low lifecycle emission liquid fuel that integrates with existing fuel logistics, it could shorten transition timelines for sectors that cannot electrify easily. That said, policy makers will seek robust evidence on sustainability, competition with other low carbon pathways, and cost effectiveness before endorsing large scale procurement or incentives.

Conclusion

Kvasir Technologies combines an EIC-supported development pathway, industrial partnerships, and a demonstration plant plan to advance a biomass to bio-crude proposition. The narrative aligns with clear short term market opportunities in marine fuels and longer term possibilities in aviation and chemical feedstocks. The next 12 to 24 months will be decisive. Independent performance data from the Fredericia demonstration, lifecycle greenhouse gas assessments, secure and sustainable feedstock arrangements, and the ability to attract further capital will determine whether the technology can move from a promising pilot stage to commercial scale impact.

This article draws on company statements, the SEAFARER project description and public announcements by Kvasir Technologies. The information should not be read as an endorsement by the European Commission or as a substitute for independent technical or investment due diligence.

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