Sustainable Aviation
SkyNRG Secures €300M to Scale Sustainable Aviation Fuel Production
Dutch firm SkyNRG raises €300M to expand SAF production in Europe and North America, aiming to cut aviation emissions with green hydrogen and waste-based feedstocks.
The aviation industry is confronting one of its most pressing challenges: how to decarbonize a sector that contributes around 2.5% of global CO₂ emissions. With air travel projected to double by 2050, emissions could soar unless significant changes occur. The urgency to act has never been higher, and Sustainable Aviation Fuel (SAF) is emerging as a vital solution to reduce aviation’s environmental impact.
In June 2025, Dutch SAF pioneer SkyNRG secured a €300 million investment to scale up its production and infrastructure. This funding round, one of the largest in the SAF sector to date, was led by APG, a Dutch pension asset manager, with €250 million on behalf of ABP, and supported by Macquarie Asset Management with an additional €50 million. The capital will fund SAF production facilities in Europe and North America, marking a pivotal moment in the journey toward cleaner skies.
SkyNRG’s latest move signals growing investor confidence in SAF and its potential to reshape aviation. But can this fuel truly deliver on its promise? And is it enough to green an industry built on fossil energy? Let’s break it down.
SkyNRG’s expansion strategy is anchored by its SAF facility in Delfzijl, the Netherlands. Developed in partnership with Swedish energy company Skellefteå Kraft, the plant is strategically connected to Schiphol Airport through existing pipelines. It is designed to produce 100,000 tonnes of SAF annually, using green hydrogen and captured CO₂—a method known as e-fuel synthesis. This process can reduce lifecycle emissions by over 80% compared to conventional jet fuel.
In Sweden, SkyNRG and Skellefteå Kraft are also collaborating on Project SkyKraft, another e-fuel facility that aims to further expand Europe’s SAF capabilities. Meanwhile, in Washington State, Project Wigeon will convert biogenic methane from landfill waste and manure into SAF and renewable diesel. This U.S.-based facility benefits from federal incentives and is projected to create hundreds of jobs, illustrating the economic benefits of clean energy investment.
These projects reflect SkyNRG’s commitment to regional supply chains and sustainable production. By locating facilities close to feedstock sources and aviation hubs, the company reduces transport emissions and strengthens supply resilience.
“SkyNRG is a frontrunner in the SAF market, demonstrating an entrepreneurial spirit and a strong commercial focus,” Arjan Reinders, Head of Infrastructure Europe at APG. SkyNRG’s SAF is made from certified sustainable feedstocks such as waste oils and agricultural residues. These materials do not compete with food crops or cause deforestation, aligning with strict sustainability criteria enforced by an independent Sustainability Board. Members include experts from WWF International, the European Climate Foundation, and the University of Groningen.
The company’s e-fuel technology leverages renewable electricity to produce green hydrogen, which is then combined with captured CO₂ to synthesize liquid fuel. This approach not only slashes emissions but also taps into circular economy principles by reusing carbon that would otherwise enter the atmosphere. Certification and traceability are central to SkyNRG’s model. Unlike oil majors such as Shell or TotalEnergies, which operate in segmented markets, SkyNRG manages the entire SAF value chain—from feedstock sourcing and certification to blending and distribution. This integrated approach ensures transparency and reliability.
SkyNRG’s client base includes over 50 airlines and major corporations. In 2011, it powered the first commercial SAF flight with KLM Royal Dutch Airlines—a milestone that laid the groundwork for broader adoption. Today, long-term SAF purchase agreements totaling €4 billion underscore the sector’s growing momentum.
Through its “Board Now” program, SkyNRG enables companies like Microsoft, PwC, and Skyscanner to invest directly in SAF production and offset their travel emissions. This initiative provides a replicable model for corporate climate action, aligning business travel with sustainability goals.
Projects like DSL-01, a regional SAF supply chain in the Netherlands, exemplify how local infrastructure can make SAF more affordable and accessible. By decentralizing production and distribution, SkyNRG reduces logistics costs and enhances energy security.
The International Air Transport Association (IATA) has committed to achieving net-zero carbon emissions by 2050. According to IATA’s sustainability roadmap, SAF is expected to contribute up to 65% of the emissions reductions needed to meet this target. Battery-electric and hydrogen-powered aircraft remain limited to shorter routes due to energy density constraints, making SAF a critical near-term solution for long-haul aviation.
In Europe, policies such as the ReFuelEU Aviation regulation and the broader European Green Deal are accelerating SAF adoption. These frameworks mandate minimum SAF blending ratios and provide funding mechanisms to support production scale-up. Similarly, the U.S. Sustainable Aviation Fuel Grand Challenge aims to produce 3 billion gallons of SAF per year by 2030, backed by federal incentives and R&D funding.
These regulatory efforts are crucial in bridging the cost gap between SAF and traditional jet fuel, which remains a barrier to widespread adoption. By supporting infrastructure and creating demand certainty, governments play a pivotal role in de-risking investment in SAF.
The global SAF market is projected to grow at a compound annual growth rate (CAGR) of 40–50% over the next decade, driven by regulatory mandates, corporate sustainability targets, and technological advancements. Investors are increasingly viewing SAF as a viable asset class within the broader energy transition landscape. SkyNRG’s €300 million funding round is a case in point. It not only reflects confidence in the company’s business model but also signals a shift in how institutional investors, like pension funds, are aligning portfolios with climate goals. APG’s investment on behalf of ABP, one of Europe’s largest pension funds, illustrates this trend.
Other players in the SAF space, such as Neste, LanzaTech, and World Energy, are also scaling up operations. However, SkyNRG’s full-spectrum control of the SAF value chain, combined with its regional supply chain strategy and corporate engagement programs, offers a differentiated approach.
Despite its promise, SAF faces several challenges. Feedstock availability remains a concern, especially as demand scales. Ensuring that feedstocks are sustainably sourced and do not lead to indirect land use change is critical to maintaining SAF’s environmental integrity.
Cost remains another barrier. SAF is currently two to five times more expensive than fossil jet fuel. Bridging this price gap requires continued public-private collaboration, including subsidies, carbon pricing, and co-funding models like those pioneered by SkyNRG.
Looking ahead, innovation in feedstock processing, carbon capture, and synthetic fuel synthesis will be key to reducing costs and expanding production. As technology matures and economies of scale kick in, SAF could become the standard fuel for global aviation.
SkyNRG’s €300 million funding round marks a significant milestone in the evolution of sustainable aviation. By expanding SAF production capacity and building regional supply chains, the company is addressing both the environmental and logistical challenges of decarbonizing flight.
While SAF is not a silver bullet, it is currently the most viable pathway to reducing aviation’s carbon footprint at scale. With strong investor backing, regulatory support, and corporate demand, SkyNRG is positioning itself at the forefront of a greener aviation future.
What is Sustainable Aviation Fuel (SAF)? Why is SAF important for aviation? Who is investing in SAF? Sources: Tech Funding News, SkyNRG, IATA Sustainability Report, European Commission, U.S. Department of Energy, BloombergNEF
Can Aviation Go Green? SkyNRG’s €300M Bet on Sustainable Flight
SkyNRG’s Global Expansion and SAF Technology
Flagship Projects in Europe and the U.S.
Technology and Sustainability Standards
Corporate Partnerships and Long-Term Demand
The Broader Context: SAF’s Role in Decarbonizing Aviation
Industry Commitment and Regulatory Support
Market Growth and Investment Trends
Challenges and Future Outlook
Conclusion
FAQ
SAF is a renewable alternative to conventional jet fuel, made from sustainable feedstocks like waste oils, agricultural residues, and captured CO₂. It can reduce lifecycle greenhouse gas emissions by up to 80%.
SAF is one of the few viable options for reducing emissions in long-haul aviation, where battery and hydrogen technologies are not yet feasible. It can be used in existing aircraft engines and infrastructure.
Institutional investors like APG and Macquarie Asset Management are backing SAF projects. Airlines, corporations, and governments are also investing through purchase agreements and incentive programs.
Photo Credit: SkyNRG
Sustainable Aviation
Washington Launches Cascadia Sustainable Aviation Accelerator for SAF
The Cascadia Sustainable Aviation Accelerator launches with $20M funding to boost Pacific Northwest Sustainable Aviation Fuel production to 1 billion gallons annually by 2035.
This article is based on official press releases from Alaska Airlines and Washington State University, as well as public announcements from the launch event.
On January 8, 2026, a coalition of government, industry, and academic leaders officially launched the Cascadia Sustainable Aviation Accelerator (CSAA). Unveiled at the Boeing Future of Flight in Mukilteo, Washington, the initiative aims to establish the Pacific Northwest as a global leader in the production and deployment of Sustainable Aviation Fuel (SAF).
According to official announcements, the accelerator is backed by $20 million in initial funding. This capital includes $10 million from Washington State’s Climate Commitment Act funds and a matching $10 million contribution from an anonymous philanthropic donor. The coalition has set an ambitious target: to scale regional SAF production to 1 billion gallons annually by 2035.
The initiative represents a broad partnership designed to bridge the gap between policy, technology, and commercial viability. Washington Governor Bob Ferguson championed the launch, positioning it as both an economic engine and a critical climate solution for the state.
The coalition features major stakeholders across multiple sectors:
“We have all the pieces in place to ensure this once-in-a-generation economic opportunity is realized, and this accelerator will make that happen.”
, Governor Bob Ferguson, via official press release
To address the complex barriers facing the SAF market, the initiative is divided into two complementary arms: the Accelerator and the Institute.
The CSAA focuses on market acceleration, financing, and policy advocacy. Its primary mission is to “de-risk” the industry for producers and investors. By harmonizing tax incentives and aggregating fuel demand from airlines and corporate partners, the Accelerator aims to create a stable market environment that encourages rapid scaling of production facilities. The Institute will handle the technical and scientific challenges of SAF adoption. It will operate a new Sustainable Aviation Fuel Research and Development Center based at Paine Field in Snohomish County. While a permanent facility is scheduled for completion by 2029, the center will open in a temporary commercial space in the coming months.
A key feature of the Institute will be the world’s first “SAF Repository.” This facility will function similarly to a seed bank, collecting, indexing, and distributing fuel samples to researchers globally to standardize testing and certification processes.
“For aviation to remain strong and resilient in the decades ahead, sustainability must be part of its future.”
, Elizabeth Cantwell, WSU President, via WSU News
Sustainable Aviation Fuel is widely considered the most viable near-term solution for decarbonizing long-haul aviation. Made from feedstocks such as agricultural waste, used cooking oil, or captured carbon, SAF can reduce lifecycle emissions by up to 80% compared to conventional jet fuel. However, current supply accounts for less than 1% of global jet fuel usage, and it remains significantly more expensive than fossil-based alternatives.
The Pacific Northwest is viewed as an ideal “test bed” for solving these problems due to its access to renewable hydroelectric power, forestry and agricultural residues, and a deep aerospace talent pool.
The Accelerator aims to support existing regional projects, including:
“This is a systems issue that no one company can solve. You’ve got great companies… ready to use this fuel, but we have to make it available.”
, Guy Palumbo, Amazon Director of Public Policy, via launch event remarks
The launch of the Cascadia Sustainable Aviation Accelerator marks a shift from individual corporate sustainability goals to a systemic regional strategy. While the target of 1 billion gallons by 2035 is aggressive, the bifurcation of the initiative into an “Accelerator” (finance/policy) and an “Institute” (R&D) suggests a mature understanding of the bottlenecks. The primary challenge for the CSAA will be feedstock logistics. While the Pacific Northwest has abundant forestry and agricultural waste, the infrastructure to collect, transport, and process these materials at a scale capable of producing 1 billion gallons does not yet exist. Furthermore, the involvement of corporate giants like Amazon and Microsoft is critical; their willingness to pay a “green premium” for sustainable air cargo and travel could provide the demand certainty that producers need to secure financing for new plants.
Success will likely depend on how quickly the Institute can streamline the fuel certification process, which has historically been a slow hurdle for new SAF pathways.
Sources:
Washington Leaders Launch Cascadia Sustainable Aviation Accelerator to Power PNW SAF Hub
A Public-Private Coalition
Strategic Structure: Accelerator and Institute
The Cascadia Sustainable Aviation Accelerator (CSAA)
The Cascadia Sustainable Aviation Institute (CSAI)
Industry Context and Regional Projects
AirPro News Analysis
Photo Credit: Alaska Airlines
Sustainable Aviation
Hawaiian and Alaska Airlines Partner for Hawaii SAF Production by 2026
Hawaiian and Alaska Airlines join Par Hawaii and Pono Energy to produce Sustainable Aviation Fuel locally with a $90M refinery upgrade, targeting 2026 deliveries.
This article is based on an official press release from Alaska Airlines and Hawaiian Airlines.
In a significant move toward energy independence and decarbonization, Hawaiian Airlines and Alaska Airlines have announced a strategic partnership with Par Hawaii and Pono Energy to establish the first local supply chain for Sustainable Aviation Fuel (SAF) in Hawaii. According to the joint announcement, the consortium aims to begin deliveries of locally produced SAF by early 2026.
The collaboration brings together the state’s largest energy provider, its primary air carriers, and local agricultural innovators. The project centers on upgrading Par Hawaii’s Kapolei refinery to process renewable feedstocks, specifically Camelina sativa, a cover crop that will be grown on fallow agricultural land across the islands. This “farm-to-flight” ecosystem is designed to reduce the aviation industry’s carbon footprint while diversifying Hawaii’s economy.
The airlines have committed to purchasing the SAF produced, providing the guaranteed demand necessary to make the project commercially viable. This agreement aligns with both carriers’ long-term goals of achieving net-zero carbon emissions by 2040.
Par Hawaii is spearheading the infrastructure development required to make local SAF a reality. According to project details summarized in the announcement and related reports, the company is investing approximately $90 million to upgrade its Kapolei refinery. This facility, the only refinery in the state, will convert a distillate hydrotreater to produce renewable fuels.
The upgraded unit will utilize HEFA (Hydroprocessed Esters and Fatty Acids) technology, a mature method for producing bio-jet fuel. Once operational, the facility is expected to have a significant output capacity.
In a joint statement, the partners emphasized the dual benefits of the initiative:
“This initiative will enable SAF production for more sustainable future flying and deliver economic benefits through the creation of a new energy sector and fuel supply chain in Hawai‘i.”
, Joint Press Statement, Alaska Airlines & Hawaiian Airlines
A critical component of this partnership is the sourcing of sustainable feedstock. Pono Energy, a subsidiary of Pono Pacific, will lead the agricultural operations. The project relies on Camelina sativa, a fast-growing, drought-tolerant oilseed crop that matures in 60 to 75 days. According to Pono Pacific, Camelina is ideal for Hawaii because it can be grown as a cover crop between other food crop rotations. This ensures that fuel production does not displace local food production. The crop helps prevent soil erosion, requires minimal water, and produces a high-protein “seedcake” byproduct that can be used as FDA-approved animal feed for local ranchers.
Chris Bennett, VP of Sustainable Energy Solutions at Pono Pacific, highlighted the circular nature of the project:
“Camelina represents a rare opportunity for Hawai‘i to build a true circular-economy model around renewable fuels.”
, Chris Bennett, Pono Pacific
The project is projected to support approximately 300 high-value manufacturing jobs at the refinery, in addition to creating new agricultural jobs for farming and harvesting. By producing fuel locally, the partnership aims to reduce Hawaii’s extreme dependence on imported fossil fuels, enhancing the state’s energy security.
The Cost and Scale Challenge
While this partnership marks a pivotal step for Hawaii, significant hurdles remain regarding cost and scale. SAF is currently estimated to be two to three times more expensive than conventional jet fuel. Without substantial subsidies or “green premiums” paid by corporate customers or passengers, this price differential poses a challenge for airlines operating in a price-sensitive leisure market like Hawaii.
Furthermore, while the projected 61 million gallons of renewable fuel is a substantial figure, it represents only a fraction of the total jet fuel consumed by commercial aviation in Hawaii. To run the refinery at full capacity, the facility will likely need to supplement local Camelina oil with imported waste oils, such as used cooking oil, until local agricultural production scales up. The success of this initiative will likely depend on the continued support of federal incentives, such as the Inflation Reduction Act, and state-level renewable fuel tax credits.
When will the new SAF be available? What is SAF? Will this project affect local food supply? Who is funding the refinery upgrade?
Hawaii Aviation Leaders Unite for Local SAF Production
Investment and Infrastructure Upgrades
The Role of Pono Energy and Camelina Sativa
Sustainable Agriculture
Economic Impact
AirPro News Analysis
Frequently Asked Questions
The partners expect the first deliveries of locally produced SAF to begin in early 2026.
Sustainable Aviation Fuel (SAF) is a liquid fuel currently used in commercial aviation which reduces CO2 emissions by up to 80%. It is produced from renewable feedstocks rather than crude oil.
No. The feedstock, Camelina sativa, is grown as a cover crop on fallow land or between food crop rotations, meaning it does not compete with food production.
Par Hawaii is leading the capital investment, estimated at $90 million, to upgrade the Kapolei refinery.
Sources
Photo Credit: Alaska Airlines
Sustainable Aviation
KLM Supports National SAF Fund to Strengthen Dutch Economy
KLM endorses the Wennink report urging a national Sustainable Aviation Fuel fund and €151-187B investment by 2035 to support Dutch economic growth.
On December 12, 2025, KLM Royal Dutch Airlines officially endorsed the findings of the newly released advisory report, “The Route to Future Prosperity” (De weg naar toekomstige welvaart). Authored by former ASML CEO Peter Wennink, the report outlines a strategic roadmap for the Dutch economy, emphasizing the need for significant investment to maintain national competitiveness.
Central to KLM’s endorsement is the report’s recommendation for the Dutch government to establish a national SAF fund. The airline argues that such a financial mechanism is critical to bridging the price gap between fossil kerosene and renewable alternatives, thereby accelerating the aviation sector’s transition to Sustainability without compromising the Netherlands’ economic standing.
Commissioned to analyze the Dutch Investments climate, the Wennink report warns that the Netherlands risks economic stagnation if it does not increase its annual growth rate to between 1.5% and 2%. According to the findings, maintaining current social standards, including healthcare, defense, and the energy transition, requires a massive capital injection.
The report estimates that an additional €151 billion to €187 billion in investment is needed by 2035 to modernize the economy. It identifies specific high-productivity sectors as essential pillars for future prosperity, including Artificial Intelligence, biotechnology, and aviation.
KLM has aligned itself with these findings, noting that a thriving business climate relies heavily on international connectivity. In its statement, the airline emphasized that the connectivity provided by Schiphol Airport is vital for Dutch trade and for attracting international headquarters to the region.
A key pillar of the aviation Strategy proposed in the report is the creation of a government-backed fund dedicated to Sustainable Aviation Fuel. Currently, SAF is significantly more expensive than traditional fossil kerosene, often three to four times the price, and suffers from limited supply availability.
KLM posits that a national fund would act as a catalyst to solve these market inefficiencies. By subsidizing the cost difference, the fund would make SAF more affordable for Airlines, ensuring they remain competitive against non-EU carriers that may not face similar sustainability mandates. Furthermore, the fund is intended to de-risk long-term investments for energy companies, encouraging the construction of domestic refineries, such as the facilities planned in Delfzijl.
“Such a fund would enable the Netherlands to accelerate the production of alternative aviation fuels and make them more affordable, thereby accelerating the sector’s sustainability.”
— KLM Royal Dutch Airlines
KLM used the release of the Wennink report to argue against unilateral national taxes or flight restrictions, which have been subjects of recent political debate in the Netherlands. The airline warns that such measures could harm the Dutch economy by reducing connectivity and driving business elsewhere.
Instead, KLM advocates for incentivizing sustainability. The airline suggests that the government must take a more active role in the energy transition rather than relying solely on industry mandates. According to the press release, “Real progress can only be achieved if government and industry work together and if the government takes a more active role.”
The endorsement of the Wennink report represents a strategic pivot for KLM, moving the conversation from “flight shaming” to economic necessity. By aligning its sustainability goals with the broader “Draghi-style” warnings about European competitiveness, KLM is positioning aviation not just as a transport sector, but as a geopolitical asset essential for the Netherlands’ survival as a trading nation.
However, this call for government funding comes amidst a complex backdrop. In 2024, KLM faced legal scrutiny regarding “greenwashing” allegations, with courts ruling that some “Fly Responsibly” advertisements painted an overly optimistic picture of SAF’s immediate impact. The push for a national fund can be interpreted as a tacit admission that the industry cannot achieve its 2030 and 2050 climate targets through market forces alone; without state intervention to lower the cost of SAF, the “green” transition remains economically unfeasible for legacy carriers.
KLM Backs Wennink Report, Calls for National SAF Fund to Secure Dutch Economic Future
The Wennink Report: A Call for Investment
The Proposal for a National SAF Fund
Strategic Competitiveness vs. Taxation
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: KLM
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