KGAL invests in Arcadia eFuels’ facility in Denmark


KGAL ESPF 6, a new Article 9 impact fund, has invested in Arcadia eFuels’ hydrogen-based production facility in Vordingborg, Denmark.

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

“From aviation and logistics to the steel and chemical industries, from water treatment to agriculture – almost anywhere that direct decarbonisation through green power reaches its limits, green hydrogen can be the solution,” said Michael Ebner, Managing Director of KGAL Investment Management.

Independent forecasters estimate European green hydrogen market to grow by nearly 55% up to 2030.

Green hydrogen is produced using renewable energy and water. The process emits no greenhouse gases when burned. It is a promising alternative to fossil fuels for a variety of industries, including aviation.

Moreover, the EU has recently introduced a mandatory blending quota for SAF. It will require airlines to use increasing amounts of SAF in their fuel mix. This is expected to drive up demand for eSAF in the coming years.

“The plant’s annual production of 68,000 tonnes could send an Airbus A320 from Munich to London about 15,000 times. Potential customers include fuel suppliers and distributors, as well as airlines and initial agreements have already been made,” said Thomas Engelmann, Head of Energy Transition at KGAL.