He completed his studies at the academy of arts in Copenhagen from 1846 bis 1852 and established himself as a marine painter in the tradition of C. W. Eckersberg. He oriented himself increasingly to non-scandinavian european painting.
From 1854 to 1867 he exhibited his sea paintings at castle Charlottenburg (Berlin, Germany). In 1857 he won the Neuhausen award. Prolongating one of his travel grants from 1865 until his death he stayed in Dusseldorf from where he took short trips to Denmark, Sweden and Holland.
Fauerholt is known for his style of romanticizing realism close to the on of Dusseldorf's marine Painting. Aside form sea paintings he also painted a series von landscapes in the Rhine area which he exhibited in Copenhagen. Most likely due to the Danish antipathy against German painting after the Prussian-Danish war of 1864 he exhibited his works in Stockhold from 1870 to 1875.