Plans for a major green aviation fuel plant in Vordingborg have taken an important step forward.
Arcadia eFuels, which develops plants for the production of synthetic fuels, has signed a binding agreement with German energy group Uniper. Under the agreement, Uniper commits to buying up to 40,000 tonnes of synthetic aviation fuel a year from the planned facility on Masnedø.
According to Martin Nielsen, who is responsible for Arcadia’s project in Vordingborg, the long-term offtake agreement, signed today in Düsseldorf, has been the biggest missing piece in the financing.
- The agreement with Uniper is a major milestone for the Vordingborg plant. Securing a long-term offtake agreement with an experienced energy partner shows confidence in the project and the technology, and it is a prerequisite for obtaining final financing, he says.
Uniper will buy the fuel for more than ten years, with the first deliveries expected from the beginning of the 2030s. The plant is planned to produce 80,000 tonnes a year, meaning Uniper will take half of the output.
The facility is expected to require an investment of around DKK 15 billion. According to Jakob Helles, Chairman of the Board of Vordingborg Port, the project could also have a significant impact beyond the factory site itself.
- We look forward to significantly increasing activity at Vordingborg Port with a company that will create many jobs on Masnedø and in our local area. It is not every day that we see 80 new jobs and potentially more than 200 jobs from knock-on effects in Vordingborg Municipality, so it is fantastic that Arcadia eFuels has now reached another milestone, he says.
An analysis by Business Vordingborg and the Centre for Regional and Tourism Research estimates that the construction phase could generate gross value added of more than DKK 1 billion for Danish companies and create more than 1,000 direct and indirect jobs.
The project has completed its technical engineering, received environmental approval and signed a grant agreement with the EU Innovation Fund. However, Arcadia still needs to secure full financing and make the final investment decision to build the plant.
