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
Photo Credit: SkyNRG
Sustainable Aviation
KBR PureSAF Technology Selected for Kazakhstan First SAF Plant
KBR licenses PureSAF technology for Kazakhstan’s first SAF facility, using an alcohol-to-jet process with domestic feedstocks.
Global engineering firm KBR announced on August 24, 2026, that it secured a contracts to license its proprietary PureSAF technology and provide engineering design for Kazakhstan’s inaugural Sustainable Aviation Fuel (SAF) production facility. The project, developed in partnership with KazMunayGas-Aero LLP (KMG-Aero) and KazFoodProducts (KFP), will utilize domestic agricultural feedstocks to produce low-carbon aviation fuel via an alcohol-to-jet (AtJ) process.
In a press release detailing the contract award, KBR confirmed the agreement supports Kazakhstan’s strategic objective to establish itself as an international aviation hub while advancing aviation decarbonization. The planned facility will leverage technology developed in collaboration with Swedish Biofuels AB to convert ethanol into drop-in aviation fuel.
Technology and Project Scope
The facility will utilize KBR’s PureSAF technology, an alcohol-to-jet pathway designed to process agricultural feedstocks into sustainable aviation fuel. The foundational trilateral agreement covering the Process Design Package (PDP) and technology licensing was signed by KBR, KMG-Aero, and KFP in Astana on July 23, 2026. KBR, which employs approximately 37,000 people and operates in 28 countries, will provide the engineering framework required to scale the AtJ process for commercial output.
KBR Sustainable Technology Solutions President Jay Ibrahim stated the company is honored to support the national commitment to reduce greenhouse gas emissions.
“KBR’s PureSAF is a feed-flexible, bankable technology that is designed to deliver high SAF yields and supports the project across the full lifecycle. We look forward to closely collaborating and supporting the successful execution of this landmark SAF project,” Ibrahim said.
Kazakhstan’s Aviation Decarbonization Strategy
The KBR contract follows a series of government initiatives aimed at building a domestic SAF supply chain. On August 4, 2026, Kazakh Prime Minister Olzhas Bektenov and Dr. Peter Lee of Hong Kong-based Full Vision Capital signed a memorandum of understanding to explore creating a green aviation fuel ecosystem in the city of Alatau. This proposed ecosystem would cover the full production cycle, from cultivating agricultural feedstock to manufacturing the finished product.
These infrastructure investments align with recommendations from global aviation regulators and industry groups. In April 2026, the International Air Transport Association (IATA) emphasized that continued investment in SAF, alongside new airport infrastructure, is critical for Kazakhstan to capitalize on global passenger and cargo traffic and strengthen its domestic aviation sector.
AirPro News analysis
The KBR contract award represents a concrete technical step in Kazakhstan’s ambition to localize SAF production, but several commercial variables remain undefined. The August 24 announcement did not disclose the financial value of the engineering contract, the projected production capacity of the facility, or a target completion date. We note that while the alcohol-to-jet pathway is a proven method for SAF production, scaling agricultural feedstock supply-chain domestically will be critical to the plant’s long-term viability. The parallel involvement of Full Vision Capital suggests the government is actively working to finance and structure this agricultural supply chain in the Alatau region to ensure the KBR-designed facility has the necessary inputs to operate at scale.
Sources: KBR
Photo Credit: Montage
Sustainable Aviation
Syzygy Plasmonics and IFC Partner on SAF Projects in Latin America
Syzygy Plasmonics and IFC sign a framework to develop SAF projects in Latin America, starting with a 350,000-gallon facility in Uruguay.
Syzygy Plasmonics and the International Finance Corporation (IFC) announced a framework agreement on August 18, 2026, to develop a pipeline of SAF projects across Latin America, beginning with a commercial-scale facility in Uruguay.
The partnership, detailed in a press release issued by Syzygy Plasmonics, pairs the company’s proprietary light-driven reactor technology with the IFC’s technical and commercial advisory services. The initiative targets emerging markets by utilizing regional renewable energy and biogas feedstocks to produce lower-carbon alternatives to conventional jet fuel.
The NovaSAF-1 project in Uruguay
The first project under this framework is NovaSAF-1, located in Durazno, Uruguay. The facility is projected to produce an estimated 350,000 gallons of SAF annually. Syzygy Plasmonics has set a target year of 2028 for the commencement of commercial-scale operations and initial fuel deliveries from the site.
NovaSAF-1 will utilize biogas sourced from the nearby Estancias Del Lago powdered milk plant. This biogas will be combined with Uruguayan renewable electricity to produce synthetic paraffinic kerosene. The production process integrates Syzygy’s light-driven technology with Fischer-Tropsch technology licensed from Velocys to maximize fuel output. According to Syzygy Plasmonics, this process yields an estimated reduction in lifecycle greenhouse gas emissions of up to 90 percent compared with conventional jet fuel.
Commercial backing and offtake agreements
The IFC framework agreement follows established commercial commitments for the NovaSAF-1 facility. On January 20, 2026, global commodities group Trafigura signed a binding six-year offtake agreement to purchase the entire production volume from the Uruguayan plant. The agreement also includes an option for Trafigura to purchase additional volumes from future Syzygy projects.
Syzygy Plasmonics CEO Trevor Best described the commercial arrangements as a critical step toward commercial-scale impact and disrupting the SAF market. The IFC, a member of the World Bank Group, will provide advisory support to help scale these operations across the region.
“The transition to lower-carbon aviation will depend on technologies that are not only innovative, but commercially viable and scalable,” said Raphaël Eskinazi, IFC Regional Investment Manager for Manufacturing and Forests in Latin America and the Caribbean. “IFC’s role is to help bridge that transition: supporting pioneering projects that can mobilize private capital, demonstrate new business models and create pathways for broader market adoption across emerging economies.”
AirPro News analysis
We view the alignment of IFC advisory services, Trafigura’s guaranteed offtake, and Velocys’ established Fischer-Tropsch technology as a significant de-risking mechanism for Syzygy Plasmonics. Scaling novel SAF production methods, particularly those categorized as Renewable Fuels of Non-Biological Origin (RFNBO), typically faces steep financing hurdles. By securing a guaranteed buyer for 100 percent of the initial plant’s output before finalizing the IFC framework, Syzygy has demonstrated a clear path to revenue.
Latin America presents a highly favorable environment for RFNBO production. The region offers abundant agricultural waste for biogas and a growing grid of renewable electricity. If NovaSAF-1 meets its 2028 production targets, the framework agreement with the IFC positions Syzygy to replicate this model rapidly across other agricultural and renewable energy hubs in the Southern Hemisphere.
Photo Credit: Syzygy Plasmonics
Sustainable Aviation
UK, Google and NATS Launch Contrail Avoidance Trial
Operation Blue Skies is a £5M, 30-month trial targeting contrail reduction across Shanwick oceanic airspace.
A consortium led by the UK government, Google, and air navigation service provider NATS has launched a £5 million, 30-month trial to mitigate aviation-induced warming contrails across the entire Shanwick oceanic airspace.
Announced on August 18, 2026, in a Google press release, “Operation Blue Skies” marks the commercial aviation industry’s first attempt to implement contrail avoidance at the scale of an entire flight corridor rather than on a per-airline basis. The initiative targets a phenomenon responsible for approximately one-third of the sector’s total climate impact.
Scaling AI for airspace-wide mitigation
The program will conduct two operational trials during the winters of 2026-2027 and 2027-2028. Testing will take place exclusively within the NATS-controlled Shanwick oceanic airspace, which encompasses the eastern half of the North Atlantic corridor. According to Google, this specific airspace accounts for roughly 5 percent of global contrail warming.
Google UK is participating on a pro-bono basis, providing a £1.4 million in-kind contribution that includes artificial intelligence research, engineering resources, and computing infrastructure. Google Technical Program Manager Paul Hodgson and Senior Program Manager Chaim Langermann described the initiative as “the world’s first state-backed trial to avoid contrails at the scale of an entire oceanic airspace.”
The broader consortium includes the UK Department for Transport (DfT), the Met Office, Contrails.org, Imperial College London, the University of Cambridge, and the Aerospace Technology Institute (ATI).
“We’re partnering with Google to back British experts and innovators to find practical ways to make flying cleaner. This is a world-first, and it is British ingenuity leading the way. By testing small tweaks to flight paths over the Atlantic, we can cut the vapour trails left behind by planes,” said UK Government Minister for Aviation, Maritime and Freight Keir Mather, according to reporting by Smart Cities World.
Transitioning from individual flights to systemic integration
Operation Blue Skies builds upon earlier research validating the use of AI-powered forecasts to predict and avoid contrail-forming regions. Google Research previously partnered with American Airlines, EUROCONTROL’s Maastricht Upper Area Control Centre (MUAC), and FlightKeys to demonstrate that contrail avoidance is scientifically and operationally viable for individual flights.
The new trial shifts the operational coordination to the air navigation service provider. By integrating predictive models directly into the airspace management level, NATS and its partners aim to evaluate how contrail mitigation impacts overall airspace capacity, controller workload, and flight efficiency across a high-density oceanic routing system.
AirPro News analysis
We view the shift from individual airline dispatch trials to an air navigation service provider-led model as a critical maturation in aviation sustainability efforts. If NATS can successfully integrate AI-driven contrail forecasting into the Shanwick oceanic clearance process without degrading airspace capacity or significantly increasing fuel burn, it could establish a blueprint for global air traffic management. The winter testing windows are particularly relevant, as atmospheric conditions during these months are highly conducive to persistent contrail formation over the North Atlantic. The results of this 30-month program will likely dictate whether regulators and service providers mandate contrail avoidance routing in the next decade.
Sources: Google Blog
Photo Credit: Google
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