SkyNRG Secures €300M to Scale Sustainable Aviation Fuel Production

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