Maersk backs two lignin-based biofuel startups

Maersk Growth, the venture capital arm of Danish shipping company A.P. Moller-Maersk, has invested in two biofuel startups developing technologies to convert lignin-rich biomass into marine fuels.

IMAGE: Lab-based production of biofuel from biomass. Kvasir Technologies

Dutch startup Vertoro and Danish startup Kvasir Technologies have each developed technologies to convert agricultural and forestry waste rich in lignin, a key component of biomass, into biofuels.

Biomass from sawdust and other woody residues and agricultural waste comprises primarily of three components – cellulose, lignin and hemicellulose. Vertoro's technology separates these components into individual feedstocks, including a lignin-based oil that can be further upgraded into bio-bunker fuel.

Kvasir's technology goes one step further by converting woody and plant-based biomass directly into a refined biofuel. The fuel can be used as a drop-in fuel or as a complete replacement for fossil fuels in ship engines without further processing, according to the company.

The investments from Maersk Growth and other backers will help both companies scale their technologies.

E-methanol producer European Energy is also among the investors in Kvasir Technologies and plans to deploy the company's process at a commercial biofuel production plant. Maersk is already an offtaker from European Energy's Kasso e-methanol facility.

“What will be decisive for Kvasir’s technology is that, through innovation and scaling, we achieve attractive price points for customers and thereby secure long-term offtake agreements before construction begins,” said Knud Erik Andersen, chief executive of European Energy.

Vertoro said its technology could support energy security “at a time of heightened geopolitical risk” and help reduce reliance on imported fossil fuels.

By Konica Bhatt

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