Arcadia eFuels has invested close to 94 million kroner in preparing a facility at Vordingborg Harbour to produce green aviation fuel. However, the project currently only exists on paper. Before the first spade can be taken, one central decision is missing: FID.
The company behind it, Arcadia eFuels Vordingborg ApS, ended 2024 with a deficit of 15.5 million kroner. The total accumulated deficit since its establishment in 2022 is now almost 22 million kroner. All amounts in the article have been converted from euros to Danish kroner at a rate of 7.45.
The plan is to construct a facility that can produce up to 66,000 tonnes of so-called e-kerosene per year. The fuel is made from water, green electricity, and captured CO₂ - and can be used in regular jet engines. The environmental approval is in place, and the site on Masnedø is ready for construction.
But the accounts also clearly show that the project is at a standstill until a so-called Final Investment Decision is made.
Without FID - no facility
FID - Final Investment Decision - is the point where investors and owners finally decide to start construction and commit the necessary billions. It requires that commercial agreements are in place and that both investors and lenders have confidence in the finances.
Without that decision, no facility will be built. And without a facility, the entire development value in the accounts - 94 million kroner - must be written down. This is directly stated in the notes to the accounts.
The owners keep the project running
To keep the wheels turning, the owners made a loan of 20 million kroner available in June. Of this, just over 13.7 million was paid out in the middle of the month. The loan is to cover ongoing costs until the FID is in place.
The company states that it is in dialogue with potential investors who can come in even before the FID - and that they are working purposefully to reach that point.
Arcadia eFuels Vordingborg ApS is primarily owned by the American parent company and the German private equity fund KGAL ESPF 6, which joined the ownership group at the end of 2023.
More employees and rising costs
The number of employees increased to four by the end of 2024, and the total salary expenses amounted to 3.5 million kroner. In addition, the company has a receivable from its American sister company of just over 48 million kroner and a cash balance of 40 million.
Arcadia expects that the facility can be ready by 2028 - provided, of course, that the FID is made and the financing is secured.
It has not been possible to get a comment from Arcadia eFuels.
