SkyNRG starts construction on SAF plant in the Netherlands

Photo: SkyNRG

SkyNRG announced Feb. 12 that it has reached financial close for its greenfield sustainable aviation fuel (SAF) production facility DSL-01 at the Delfzijl chemical park in the north of the Netherlands.

Once operational, it will produce 100,000 metric tons of SAF each year and 35,000 tons of sustainable byproducts including biobased propane, butane and naphtha.

The plant will make use of the hydroprocessed esters and fatty acids (HEFA) pathway, enabled by Topsoe’s HydroFlex technology.

Over time, the lifecycle greenhouse-gas (GHG) reduction of SAF produced at DSL-01 is expected to rise from around 80 percent to more than 90 percent, driven by increasing availability of Dutch renewable energy and reduced reliance on natural gas.

The project will strengthen the regional green industrial cluster, contributing to the sustainability ambitions of Groningen Seaports and the Province of Groningen.

With all permits approved, project and financing agreements completed this milestone concludes a seven-year development period.

SkyNRG said this reflects its evolution from a company focused on sourcing and distributing SAF to becoming an owner and operator of SAF production capacity.

Construction has begun and start-up is expected mid-2028.

KLM-Royal Dutch Airlines is the primary off-taker for the SAF produced.

The volumes support the airline in meeting its sustainability ambitions and its compliance with European regulatory requirements.

DSL-01 is the first commercial-scale SAF plant to secure nonrecourse project financing.

“This milestone demonstrates growing market confidence in scalable SAF production and provides a model for future sustainable fuel projects globally,” SkyNRG stated.

With financial close, the project brings together existing and new shareholders including KLM, Macquarie Group, APG and minority shareholders.

Evercore acted as sole equity-financing advisor, while Clifford Chance served as legal advisor.

Technip Energies will serve as the engineering, procurement and construction (EPC) contractor, leading a strong selection of global and national suppliers and subcontractors.

Alongside DSL-01, SkyNRG is developing Project Wigeon in the U.S.’s Pacific Northwest with global SAF partner Boeing.

In Northern Sweden, SkyNRG is also developing Project SkyKraft with Skellefteå Kraft, an eSAF facility that will produce SAF from renewable electricity, green hydrogen and biogenic CO2.

The project’s financing is supported by a consortium group of international investors, commercial lenders and advisors.

The financial advisory role was undertaken by Crédit Agricole Corporate and Investment Bank as Lead financial advisor supported by ABN AMRO Bank N.V. as local financial and investment advisor.

Debt was provided by a lenders consortium consisting of ABN AMRO Bank N.V., BNP Paribas, Coöperatieve Rabobank U.A., Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, ING Bank N.V., Mizuho Bank Ltd., Natixis, Sumitomo Mitsui Banking Corp., Société Générale, Standard Chartered Bank, and UniCredit Bank Austria AG.

SkyNRG appointed ING Bank N.V. as facility agent.

“Reaching this important milestone in the development of our DSL-01 facility marks an important step in our transition to becoming an owner and operator of SAF production capacity,” said SkyNRG CEO and Co-Founder Maarten van Dijk. “I’m proud of our team and partners who have worked tirelessly through complexity and overcome significant challenges to bring the project to this point. It is crucial that we increase the global production of SAF to enable future generations to have the ability to fly when needed and SAF plays a vital role in the decarbonization of aviation.”

SkyNRG thanked its Round A lenders KLM, NOM, Groninger Groeifonds, SHV and Royal Schiphol Group for their continued commitment and confidence in the DSL-01 project.

“Their long-term support has been instrumental in progressing the facility from development toward construction and in strengthening the foundations for SAF production in the Netherlands,” the company stated.