Arcadia eFuels has made significant progress with its plans for a major facility at the Port of Vordingborg on Masnedø, where the company aims to produce green aviation fuel for the aviation industry. But this year’s accounts also show that the project is still missing the customer agreement and financing needed before construction can begin.
The annual report is presented in euros, but converted figures show a loss of DKK 11.1 million, compared with DKK 15.4 million the year before. At the same time, cash reserves fell from DKK 39.8 million to DKK 10.8 million.
The figures provide a clearer picture of what still needs to fall into place before the billion-kroner project can become reality.
Lacks major customer agreement
Arcadia says it is in negotiations with a potential customer that would take a significant share of the green aviation fuel planned for production at the facility.
The agreement would be a long-term off-take contract, under which a buyer commits to purchasing large volumes of the future fuel. For major energy projects, this type of agreement can be decisive, as banks and investors typically want documentation that there will be customers for the output before they finance construction.
Arcadia expects the agreement to be signed in the first half of 2026.
Investment decision comes next
Once the off-take agreement is in place, the company will begin the process leading up to the Final Investment Decision, usually referred to as FID.
That is the final decision by owners, investors and lenders on whether the project should be built and whether the necessary billions will be made available.
Arcadia expects the decision to be made in the first quarter of 2027. This will be followed by Financial Close, when the final financing and loan structure are concluded, allowing construction to begin.
DKK 94 million depends on the project’s future
The company has capitalised development costs of DKK 93.5 million.
The amount covers, among other things, technical development work, consultancy fees and the so-called pre-FEED and FEED studies. These are the technical preparatory studies that describe how a large industrial plant is to be built before a final investment decision can be made.
Arcadia emphasises, however, that the value is based on an expectation that the plant will actually be built. If financing or the necessary approvals do not fall into place, the value may have to be written down.
Still dependent on shareholder support
During 2025, the company received new shareholder loans of DKK 13.7 million to finance development and administrative costs.
At the same time, it still needs additional financing to reach FID and cover legal and advisory costs.
Management nevertheless assesses that the company has sufficient liquidity to continue operations over the coming year, based on cash flow budgets and support from its owners.
Green light is not enough
Arcadia has already received environmental approval for the plant on Masnedø, and the project has been selected for support from the EU Innovation Fund.
But those two milestones do not in themselves turn the project into a construction-ready scheme. The EU funding will only be released once the overall financing is in place. And the value of the development work completed so far still rests on the same assumption: that Arcadia secures the customers and the capital needed to bring the plan to life.
