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.
Can Aviation Go Green? SkyNRG’s €300M Bet on Sustainable Flight
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 Global Expansion and SAF Technology
Flagship Projects in Europe and the U.S.
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.
Technology and Sustainability Standards
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.
Corporate Partnerships and Long-Term Demand
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 Broader Context: SAF’s Role in Decarbonizing Aviation
Industry Commitment and Regulatory Support
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.
Market Growth and Investment Trends
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.
Challenges and Future Outlook
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.
Conclusion
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.
FAQ
What is Sustainable Aviation Fuel (SAF)?
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%.
Why is SAF important for aviation?
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.
Who is investing in SAF?
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.
Sources: Tech Funding News, SkyNRG, IATA Sustainability Report, European Commission, U.S. Department of Energy, BloombergNEF
Sustainable Aviation
DHL Express Starts SAF Flights at Paris CDG With TotalEnergies Fuel
DHL Express signed a SAF deal with TotalEnergies covering 5 million liters in its first year for flights from Paris Charles de Gaulle.
DHL Express has signed a sustainable aviation fuel (SAF) supply agreement with TotalEnergies whose initial phase covers 5 million liters over one year, for aircraft departing its hub at Paris Charles de Gaulle Airport (CDG). It is DHL Express’s first SAF use in France. The first SAF-powered DHL aircraft left CDG on November 9, 2026, the day the deal was announced.
In a press release dated November 9, 2026, issued from Bonn and Paris, DHL said it is the first express logistics provider to use SAF at CDG. The move coincides with the fifth anniversary of the Paris hub. DHL expects emission reductions of about 11,800 metric tons of CO2e a year in France, with the SAF flights running from CDG to its air hubs in Leipzig, Casablanca, Milan and London.
What the Paris agreement covers
DHL describes the deal as a first SAF supply agreement “over 5 million liters” for DHL Express air operations, and said its initial phase covers 5 million liters over the course of one year for aircraft departing the Paris CDG hub. DHL said the SAF is made from waste and residual materials such as used cooking oil, and works in existing aircraft and airport infrastructure without modifications. Compared with fossil jet fuel, it can cut lifecycle greenhouse gas emissions by about 80%, depending on feedstock and production method.
The volumes will also be included in GoGreen Plus, DHL’s book-and-claim offering, which assigns emission reductions to customers even when their shipments do not physically travel on SAF. DHL said customers can use it to reduce their Scope 3 emissions. SHEIN signed a GoGreen Plus agreement with DHL Express in March 2026 to use SAF supplied by DHL for its international express air freight.
Travis Cobb, executive vice president of global network operations and aviation at DHL Express, pointed to the share of SAF already used in DHL’s own fleet:
“In 2025, SAF already accounted for 10% of the aviation fuel used across DHL’s own aircraft fleet”
Philippe Prétat, CEO of DHL Express France, said the opening of the Paris hub in 2021 marked a major milestone, and that SAF use shows that strong logistics performance and a lower carbon footprint can go together. Mathieu Soulas, director of new mobilities at TotalEnergies, said “Sustainable Aviation Fuels are a key lever for reducing aviation emissions today.”
How the deal compares with DHL’s SAF targets
At 5 million liters, the Paris deal is small next to the supply agreements DHL Express has signed elsewhere. In March 2022, DHL announced deals with bp and Neste for more than 800 million liters of SAF until 2026, which it described at the time as among the largest SAF deals in aviation. In May 2026, DHL Express signed an offtake agreement with SAF One for 25,000 metric tons of unblended SAF a year from a plant in Bahrain, with production planned for 2028.
DHL’s stated aim is to raise SAF use to 30 percent by 2030, a goal it restated in May 2026 and that also appears in the Sustainability Roadmap it cited in March 2022. DHL said in March 2026 that SAF accounted for about 10% of fuel consumption in its dedicated air fleet in 2025, up from 3.5% in 2024.
TotalEnergies has been expanding its SAF output in France. In a June 16, 2025 release, the company said it expects to produce more than half a million tons of SAF a year from 2028, to cover the increase in the European SAF blending mandate, set at 6% for 2030. It said its Grandpuits biorefinery would have capacity for 230,000 tons a year of SAF in 2026, and that SAF coprocessing had begun at its Normandy platform. The company said it supplies SAF-blended jet fuel to airports including Paris-Le Bourget, Bordeaux and Toulouse, and that Air France-KLM had signed a deal for up to 1.5 million tons of SAF over ten years.
The Paris CDG hub at five years
DHL opened the CDG hub in 2021 with a EUR170 million investment, which it describes as its largest in France since entering the country in 1976. The site occupies a 91,000-square-meter plot with 34,000 square meters of operational space, and its sorting system handles up to 38,000 parcels and documents per hour. The hub runs 24/7 and employs 760 people.
The AirPro Atlas lists 72,029,407 passengers at CDG in 2025.
DHL also cited ground-side measures in France. It said all of DHL Express France’s owned light commercial vehicles are electric, that it serves 55 French city centers with low-emission delivery modes, and that this supports DHL Group’s target of two-thirds last-mile electrification by 2030.
Sustainable Aviation
Singapore Airlines Signs SAF Offtake Deal with Aether Fuels
Singapore Airlines commits to buying SAF from Aether Fuels’ Project Beacon facility in Singapore, due online in 2028.
Singapore Airlines (SQ) has finalized a firm purchase agreement to offtake next-generation Sustainable Aviation Fuel (SAF) from Aether Fuels, becoming the first carrier to commit to the upcoming Project Beacon production facility in Singapore.
Announced in a joint press release on 28 October 2026, the agreement transitions a previous memorandum of understanding into a binding contract. The deal secures future fuel volumes to support the airline’s target of replacing 5 percent of its total fuel consumption with SAF by 2030.
Transitioning from framework to firm commitment
The 28 October 2026 announcement builds on a Memorandum of Understanding (MoU) signed by the two companies on 4 February 2025. That initial framework outlined the airline’s intention to procure neat SAF for a five-year period, with an option to extend for an additional five years, once Aether commenced commercial production.
While the companies confirmed the transition to a firm offtake agreement, the exact fuel volumes and financial terms were not disclosed in the release.
Project Beacon and the Aurora technology
Aether Fuels, a climate technology firm incubated and funded in 2022 by Temasek-backed deep tech venture firm Xora, officially launched Project Beacon on 11 November 2025. The project is a partnership with Aster, a joint venture between Indonesian chemical and infrastructure company Chandra Asri and commodities trader Glencore.
The commercial-scale SAF facility will be located at Aster’s refining hub on Pulau Bukom in Asia-Pacific in Singapore. Aster acquired this site from Shell to develop a dedicated sustainable fuels footprint. Construction of the facility is scheduled to commence in 2026.
Once operational in 2028, Project Beacon is projected to produce 50 barrels per day, equating to approximately 2,000 tons of SAF annually. The plant will utilize Aether’s proprietary Aurora technology to produce Fischer-Tropsch Synthesized Paraffinic Kerosene (FT-SPK). According to Aether Fuels, this pathway is expected to deliver a minimum 70 percent reduction in greenhouse gas emissions compared to conventional jet fuel.
De-risking commercial scale-up
The firm offtake agreement follows a critical technical milestone for Aether Fuels. On 29 September 2026, the company announced the successful operation of a fully integrated demonstration line at RTI International in North America.
The 2.5 barrel-per-day system combined Aether’s Aurora Tri-Converter and Upgrader units with an existing Fischer-Tropsch reactor. The demonstration successfully converted renewable natural gas derived from landfill gas and captured industrial carbon dioxide into synthetic aviation fuel meeting ASTM D7566 specifications. This successful run provided the engineering data required to de-risk the design and scale-up of the Project Beacon facility ahead of its construction phase.
Singapore’s SAF ecosystem and airline targets
The aviation industry is increasingly reliant on SAF to meet decarbonization targets, but feedstock availability remains a primary bottleneck. Aether’s FT-SPK pathway addresses this by utilizing industrial waste gases and biomethane, bypassing the constrained agricultural and lipid-based feedstocks, such as used cooking oil, that dominate current SAF production.
The agreement aligns with broader regional regulatory shifts. The Civil Aviation Authority of Singapore (CAAS) has mandated a SAF levy for flights departing Singapore starting in 2026 to fund centralized SAF procurement. Singapore Airlines, which operates a fleet with an average age of under eight years, has committed to achieving net-zero carbon emissions by 2050.
AirPro News analysis
We view this firm offtake agreement as a clear indicator of the tightening future market for non-lipid SAF. The aviation sector’s reliance on Hydroprocessed Esters and Fatty Acids (HEFA) SAF is running into hard limits regarding used cooking oil and tallow availability. By committing to Aether’s FT-SPK product before the Project Beacon facility has even broken ground, Singapore Airlines is moving aggressively to lock in alternative feedstock pathways.
This early commitment is necessary for airlines aiming to meet 2030 mandates. The lead times for financing, constructing, and scaling novel waste-to-fuel facilities span several years, meaning airlines cannot wait for commercial production to begin before securing their supply lines.
Sustainable Aviation
SABA Members Back Infinium eSAF Facility With Long-Term Deals
Google, McKinsey, and others sign binding SAFc agreements to support Infinium Energy’s 100,000 MT/year Texas eSAF project.
Corporate members of the Sustainable Aviation Buyers Alliance (SABA) have signed binding, multi-year agreements to purchase sustainable aviation fuel certificates (SAFc) from Infinium Energy’s planned electro-sustainable aviation fuel (eSAF) facility in Texas. The commitments, announced on September 22, 2026, are designed to provide the financial demand signals necessary for Infinium to reach a final investment decision on the project.
In a press release issued by SABA, the organization confirmed that American Airlines (AA) will serve as the physical offtaker for the fuel, managing logistics and delivery. The corporate buyers purchasing the associated certificates include AVEVA, Bain & Company, Google, and McKinsey & Company. The agreement marks the first time SABA’s procurement model has been utilized to directly drive new production capacity for scalable sustainable aviation fuel.
Project Atlas production and environmental targets
Infinium Energy was selected through a SABA procurement process earlier in 2026 to provide ultra-low carbon eSAF. The fuel is produced using waste carbon dioxide and renewable energy, distinguishing it from traditional biofuel pathways that rely on agricultural or waste feedstocks.
The planned Texas facility, designated Project Atlas, is expected to have an annual sustainable aviation fuel (SAF) production capacity of 100,000 metric tons. According to the alliance, the contracted volumes will support an expected greenhouse gas abatement of 212,000 metric tons of carbon dioxide equivalent (mtCO2e). SABA equates this emissions reduction to approximately 3,500 commercial flights between John F. Kennedy International Airport (JFK) and Los Angeles International Airport (LAX).
“We’re proud to partner with SABA members including AVEVA, Bain & Company, Google, McKinsey, and others, as well as American Airlines to bring Infinium Energy’s next world scale eSAF facility to life. Their commitment reflects a shared conviction that decarbonizing aviation requires real investment in next-generation supply,” said Robert Schuetzle, CEO of Infinium Energy.
Aggregating demand through book-and-claim
The transaction utilizes a book-and-claim model. Corporate buyers purchase the SAFc to claim the environmental benefits against their business travel emissions, while the physical fuel is delivered to partner airlines. This mechanism allows corporations to fund SAF production even when the physical fuel cannot be delivered directly to the airports their employees use.
American Airlines will manage the physical integration of the eSAF into the commercial aviation fuel supply chain. Jill Blickstein, Chief Sustainability Officer at American Airlines, stated that the corporate commitments broaden participation in the SAF market and demonstrate how customers can collaborate with airlines and fuel producers to advance decarbonization.
SABA, a joint initiative of the Environmental Defense Fund (EDF), the Center for Green Market Activation (GMA), and RMI, has aggregated $500 million in SAFc demand from 35 companies to date. Aviation currently accounts for approximately 2 to 3 percent of global greenhouse gas emissions.
“Novel technologies are critical to meeting future demand for sustainable aviation fuel, but they will not be operational in time without investments made today. This procurement demonstrates how aggregated, long-term demand can help take promising eSAF projects from idea to reality,” said Jon Creyts, CEO of RMI.
AirPro News analysis
We view this agreement as a critical structural step for the eSAF market. Power-to-Liquid (PtL) fuels like those planned for Project Atlas face a steep commercialization barrier. They are highly capital-intensive to build and currently produce fuel at a significant cost premium compared to both conventional Jet A and HEFA-based SAF derived from waste fats and oils.
Airlines operate on thin margins and generally cannot absorb the full green premium of eSAF alone. By unbundling the environmental attributes from the physical fuel, the SABA model allows highly capitalized corporate entities like Google and McKinsey & Company to absorb that premium. More importantly, signing binding, multi-year offtake agreements provides the revenue certainty that infrastructure lenders require before financing first-of-a-kind industrial facilities. If Project Atlas reaches a positive final investment decision based on these contracts, it will validate the book-and-claim model as a viable financing mechanism for next-generation aerospace infrastructure.
Sources: Sustainable Aviation Buyers Alliance via PR Newswire
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