Sustainable Aviation
SkyKraft Secures €21M Grant to Develop Large-Scale eSAF Facility in Sweden
SkyKraft joint venture awarded €21 million to develop an electro Sustainable Aviation Fuel plant in Skellefteå, aiming to cut emissions and boost Sweden’s fuel security.

This article is based on an official press release from SkyNRG.
Project SkyKraft, a strategic joint venture between Dutch sustainable aviation fuel (SAF) developer SkyNRG and Swedish power company Skellefteå Kraft, has secured a major financial boost to advance its synthetic fuel ambitions. According to an official company announcement, the partnership has been awarded a €21 million (approximately 231 million SEK) grant from the Swedish Energy Agency’s Industriklivet (Industrial Leap) initiative.
The newly acquired funding is earmarked to accelerate the feasibility, design, and engineering phases for a large-scale electro Sustainable Aviation Fuel (eSAF) production facility in Skellefteå, Sweden. Initiated in 2022, the SkyKraft project aims to merge SkyNRG’s extensive experience in SAF markets with Skellefteå Kraft’s robust renewable energy infrastructure.
This development represents a significant milestone for the European aviation sector. If brought to full operational capacity, the planned facility could produce enough eSAF to cover more than the entire annual fuel consumption of Sweden’s domestic aviation sector, marking a critical step toward decarbonizing regional air travel and enhancing domestic energy security.
The SkyKraft eSAF Facility
Location and Infrastructure
According to the project details released by SkyNRG, the planned eSAF facility will be situated at Näsudden in the Port of Skellefteå, Northern Sweden. The location was strategically selected for its optimal industrial conditions. The site offers direct access to nearly 100% renewable energy, primarily sourced from hydro and wind power, which is essential for the energy-intensive electrolysis process used to generate fossil-free hydrogen.
Furthermore, the Näsudden site provides proximity to biogenic carbon dioxide (CO2) captured from local industries, as well as existing electrical and transport infrastructure. By combining this fossil-free hydrogen with captured biogenic CO2, the facility will produce eSAF, a “drop-in” synthetic fuel that requires no modifications to existing aircraft engines or airport fueling systems.
Production Capacity and Timeline
The €21 million grant from the Swedish Energy Agency will cover the project’s critical development period, officially slated from January 1, 2026, to December 31, 2027. The company states that these funds will be utilized to prepare the detailed documentation necessary to reach a Final Investment Decision (FID), which is currently targeted for 2027.
At full scale, the SkyKraft facility is projected to produce between 120,000 and 130,000 tonnes of eSAF annually. The fully developed factory is expected to represent a multi-billion SEK investment, generating approximately 100 local jobs in the region.
“This support is a strong signal that SkyKraft represents the kind of project Europe needs to scale SAF production. eSAF is a complex and capital-intensive industry, but the long-term demand fundamentals are very strong. With SkyNRG’s experience in SAF markets and Skellefteå Kraft’s renewable energy expertise, SkyKraft combines industrial capability with the right market conditions to move from ambition to delivery.”
Environmental and Economic Impact
Emissions Reductions
The environmental projections for the SkyKraft facility are substantial. Data provided in the announcement indicates that the eSAF produced at the Skellefteå plant will reduce greenhouse gas emissions by over 95% compared to conventional fossil jet fuel. Upon full-scale implementation, the facility is estimated to reduce annual CO2 emissions by 486,000 tonnes.
Domestic Energy Security
Beyond emissions reductions, the project addresses critical vulnerabilities in national energy supply chains. The projected output of up to 120,000 tonnes per year exceeds the total annual aviation fuel consumption of Sweden’s domestic flights. This capacity positions Sweden to achieve a massive step toward national self-sufficiency in sustainable transport.
“Funding from Industriklivet is a clear confirmation that the Swedish Energy Agency also recognizes SkyKraft as vital both for the aviation sector’s transition and for Sweden’s resilience. During the feasibility phase, we have received further confirmation that Näsudden offers world-class conditions for the production of eSAF.”
The strategic importance of this domestic production was echoed by government officials. Caroline Asserup, Director General of the Swedish Energy Agency, noted in the release that current geopolitical situations and global fuel market volatility highlight the necessity of moving away from fossil import dependence. She emphasized that the investment provides dual synergies: reducing emissions while simultaneously building up domestic aviation fuel production.
Industry Context and Regulatory Tailwinds
ReFuelEU Aviation Mandates
The advancement of the SkyKraft project is heavily supported by shifting European regulations. The European Union’s ReFuelEU Aviation regulation mandates that fuel suppliers blend an increasing percentage of sustainable aviation fuels into their supplies starting in 2025. This mandate is set to scale aggressively, requiring a 70% SAF blend by the year 2050. Unlike broader electro-fuel markets, which have occasionally struggled to find guaranteed off-takers, the demand for eSAF is structurally secured by these strict regulatory requirements.
AirPro News analysis
We observe that the €21 million grant from the Swedish government arrives at a pivotal moment for the European renewable fuels sector. Over the past year, several early-stage electro-fuel and green hydrogen projects across Europe have faced significant financing hurdles, largely due to high capital costs and uncertain short-term demand. However, the backing of SkyKraft by the Industriklivet initiative, which is co-financed by the Next Generation EU recovery fund, signals strong institutional confidence in this specific joint venture.
By localizing the production of critical energy resources and utilizing domestic renewable electricity alongside biogenic CO2, Sweden is effectively insulating its aviation sector from the volatile global oil markets. This project serves as a blueprint for how strategic state funding can bridge the gap between ambitious climate targets and the capital-intensive reality of scaling synthetic fuel infrastructure.
Frequently Asked Questions (FAQ)
What is eSAF?
Electro Sustainable Aviation Fuel (eSAF) is a synthetic aviation fuel produced by combining fossil-free hydrogen (created via water electrolysis using renewable electricity) with captured biogenic carbon dioxide. It is a “drop-in” fuel, meaning it can be used in existing aircraft without infrastructure changes.
How much funding did Project SkyKraft receive?
The project was awarded a €21 million (approximately 231 million SEK) grant from the Swedish Energy Agency’s Industriklivet initiative.
When will the SkyKraft facility be operational?
The current grant covers the development period from 2026 to 2027. The project aims to reach a Final Investment Decision (FID) in 2027, which will dictate the subsequent construction and operational timeline.
How much fuel will the facility produce?
At full scale, the facility aims to produce between 120,000 and 130,000 tonnes of eSAF annually, which is enough to cover more than the total annual fuel consumption of Sweden’s domestic flights.
Sources: SkyNRG
Photo Credit: SkyKraft
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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