Project SkyKraft awarded 21-million euros from Swedish government to advance eSAF production in Skellefteå

Image: SkyNRG

SkyKraft, the joint venture between SkyNRG and the Swedish power company Skellefteå Kraft, has been awarded approximately 21-million euros (USD$24.4 million) from the Swedish Energy Agency’s Industriklivet Initiative. 

While Project SkyKraft is grounded in long-term commercial investment and market demand, early-stage funding remains important in advancing projects toward final-investment decision (FID).

The support will help accelerate the next phase of development for the planned eSAF facility at Näsudden in the Port of Skellefteå. 

Industriklivet, part of Next Generation EU, cofinances industrial projects that reduce fossil emissions.

The grant will support the next phase of Project SkyKraft’s feasibility work, including the design and engineering activities needed to prepare for FID in 2027.

Once operational, SkyKraft aims to produce up to 130,000 metric tons of eSAF annually using renewable electricity and biogenic CO2.

The grant comes at an important moment for the renewable fuels sector in Europe.

While several electro-fuel projects have faced financing challenges in recent months, the support from Industriklivet underlines confidence in SkyKraft’s business model, strategic partnerships and long-term market potential.

Unlike broader electro-fuel markets, demand for eSAF is being driven by clear regulatory mandates and accelerating aviation decarbonization targets across Europe. 

“This support is a strong signal that SkyKraft represents the kind of project Europe needs to scale SAF production,” said SkyNRG CEO and Co-Founder Maarten van Dijk. “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.” 

Joachim Nordin, CEO of Skellefteå Kraft, added, “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 eSAF production. This includes access to renewable electricity and biogenic carbon dioxide required for production, but also the necessary infrastructure and the expertise available within our companies and in our region.” 

Caroline Asserup, director general at the Swedish Energy Agency, said, “The geopolitical situation and what is currently happening in the global fuel markets shows how important it is to get away from dependence on fossil imports. This investment provides synergies as we can both reduce emissions and at the same time build up domestic production of aviation fuel.” 

SkyKraft is SkyNRG’s third facility, which joins Project Wigeon, a renewable natural gas (RNG)-to-SAF project in the U.S., and DSL-01, a large-scale SAF plant in the Netherlands that recently reached FID earlier this year. 

Together these projects highlight the continued momentum behind SAF projects with strong industrial foundations and clear market alignment, SkyNRG stated.