KGAL to invest in Arcadia eFuels’ green hydrogen-based production facility in Denmark

KGAL, a German asset manager, is to invest €200 million in Arcadia eFuels’ green hydrogen-based production facility in Vordingborg, Denmark.

The plant is expected to produce approximately 68,000 tonnes of climate-neutral synthetic aviation fuel (eSAF) per year using self-produced green hydrogen from mid-2026.

Arcadia eFuels will be producing eSAF on a scale that aligns with the EU’s recent decision to introduce a mandatory quota for sustainable aviation fuel. The EU has set a target of 2% SAF blending in 2025, rising to 5% in 2030 and 63% in 2050.

KGAL ESPF 6, an energy transition fund that focuses on new hydrogen infrastructure projects in the EU-27 and UK, will be used to make the investment. KGAL ESPF 6 has a further 30 green hydrogen and energy transition developments in the pipeline, with two of them in advanced negotiations.

Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable energy sources, such as solar and wind power. The hydrogen produced can then be used to produce eSAF using a process called the Fischer-Tropsch process.

KGAL’s investment in Arcadia eFuels’ green hydrogen plant is a significant step forward in the development of the green hydrogen industry in Europe. The plant will help to reduce the carbon footprint of the aviation industry and create jobs and boost economic growth in Denmark.