Sustainable Aviation
SkyNRG Closes Financing for Europe’s First Standalone SAF Plant
SkyNRG reaches financial close for DSL-01, Europe’s first standalone SAF plant in the Netherlands, targeting full operations by mid-2028.
This article is based on an official press release from SkyNRG and accompanying project documentation.
SkyNRG has officially reached financial close for DSL-01, its first dedicated commercial-scale Sustainable Aviation Fuel (SAF) production facility. Located in Delfzijl, Netherlands, the project marks a significant milestone in the European aviation sector’s transition to renewable energy. According to the company’s announcement, construction on the facility has already commenced, with full operations targeted for mid-2028.
The DSL-01 project is distinguished as Europe’s first standalone greenfield SAF plant, meaning it is being built from the ground up rather than as an expansion of an existing fossil fuel refinery. Once operational, the facility is projected to produce 100,000 tonnes of SAF annually, alongside 35,000 tonnes of by-products including bio-propane and naphtha.
Maarten van Dijk, CEO and Co-Founder of SkyNRG, emphasized the strategic importance of this development in a statement regarding the launch:
“Reaching this important milestone… marks an important step in our transition to becoming an owner and operator of SAF production capacity. This milestone demonstrates growing market confidence in scalable SAF production and provides a model for future sustainable fuel projects globally.” The facility will utilize Topsoe’s HydroFlex™ technology, operating on the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. SkyNRG has stated that the plant will process waste oils and fats,predominantly sourced from regional industries,and will explicitly exclude virgin vegetable oils such as palm or soy to avoid competition with food supplies. The project aims to deliver a lifecycle CO2 emissions reduction of more than 85% compared to fossil jet fuel.
Technip Energies has been awarded the Engineering, Procurement, and Construction (EPC) contract for the site. While specific contract values are often confidential, industry reports estimate the value between €500 million and €1 billion. The construction phase is expected to generate hundreds of jobs in the Groningen Seaports region, contributing to the area’s developing green industrial cluster.
A critical aspect of the DSL-01 project is its financial structure. It is the first commercial-scale SAF plant to secure non-recourse project financing, a move that signals increasing maturity in the SAF market. Under this structure, lenders are repaid based on the project’s future cash flow rather than the general assets of the parent company.
The investment consortium includes: Arjan Reinders, Head of Infrastructure Europe at APG, noted the alignment of this investment with broader sustainability goals:
“SkyNRG represents the first investment in the SAF sector on behalf of our client [ABP], which is closely aligned with our ambition to create impact by investing at the forefront in energy transition assets.” To ensure the commercial viability of the plant, SkyNRG has secured long-term offtake agreements. KLM Royal Dutch Airlines has committed to purchasing 75,000 tonnes of SAF annually for a period of 10 years. This volume represents three-quarters of the plant’s total SAF output and is essential for KLM to meet upcoming EU mandates under the ReFuelEU Aviation Regulation.
Additionally, SHV Energy has agreed to purchase the bioLPG (bio-propane) by-products produced by the facility. Shell, a strategic partner of SkyNRG since 2019, retains an option to purchase SAF from the plant and continues to provide technical and commercial expertise.
The successful financial close of DSL-01 represents a pivotal moment for the SAF industry, specifically regarding “bankability.” Historically, SAF projects have struggled to attract traditional project finance due to perceived technology and market risks. The willingness of a major banking syndicate to provide non-recourse debt suggests that financial institutions now view HEFA-based SAF production as a stable asset class.
Furthermore, the timing of this project aligns directly with the European Union’s “Fit for 55” regulatory package. With the ReFuelEU Aviation Regulation mandating a 2% SAF blend by 2025 and rising to 6% by 2030, the DSL-01 facility will come online just as demand pressures intensify. Unlike competitors expanding existing refineries, SkyNRG’s success with a standalone greenfield site provides a “proof of concept” that could accelerate the development of similar independent facilities globally, such as their planned projects in the United States and Sweden.
Sources:
SkyNRG Reaches Financial Close on Europe’s First Standalone Greenfield SAF Plant
Project Specifications and Technology
Financial Structure and Investment Partners
Strategic Partnerships and Offtake Agreements
AirPro News Analysis
Photo Credit: SkyNRG