Arcadia eFuels is one of five European companies urging the EU to step up efforts to expand production of green aviation fuel in Europe.
The company is behind the planned multi-billion-kroner project on Masnedø near Vordingborg Harbour, where synthetic aviation fuel is to be produced for the aviation sector. The project has already received environmental approval, and in March EU support from the Innovation Fund was formalised. But Arcadia’s latest annual report showed that the project still lacks the major customer agreement and financing needed before construction can move ahead.
The European push is being made by Arcadia eFuels, INERATEC, Norsk e-Fuel, SkyNRG and ZAFFRA. The five companies argue that Europe should build up its own production of green aviation fuel to make the aviation sector less dependent on imported fuel and less exposed to volatility in energy markets.
Still waiting for a major customer
The companies also point out that Europe already has many projects on the drawing board, but that large-scale plants are struggling to reach final investment decisions. They say projects need customers willing to commit to buying the fuel, support for the first major plants and more stable conditions for the investors and lenders expected to finance them.
That challenge is familiar to Arcadia. In its 2025 annual report, the company said it was still negotiating with a potential customer expected to take a significant share of production from the Masnedø plant. Such an agreement can be crucial for a project of this scale, as banks and investors will normally want clear evidence of future revenue before making financing available.
Arcadia’s Danish project is highlighted in the material from the five companies. The plan for Masnedø is a full-scale Power-to-X plant, where green electricity, water and captured CO2 will be used to produce synthetic aviation fuel. The total investment has previously been estimated at around DKK 15 billion if the entire project is realised.
The European initiative does not change the status of the Masnedø project. The EU support will only be paid out once the full financing is in place, and Arcadia has not yet made a final decision to build the plant.
