SkyNRG Begins Construction on Europe's First Dedicated Sustainable Aviation Fuel Plant
Delfzijl, Friday 13 February 2026 Construction has commenced on Europe’s first facility dedicated solely to sustainable aviation fuel, a landmark project set to deliver 100,000 tonnes annually to decarbonise the aviation sector.
Financial Close and Construction Launch
SkyNRG has officially reached financial close for its DSL-01 project in Delfzijl, Netherlands, enabling the immediate commencement of construction as of February 2026 [1][2]. This development marks the culmination of a seven-year development phase and the transition into active execution for the company [4]. Once operational in mid-2028, the facility will stand as Europe’s first plant dedicated exclusively to the production of Sustainable Aviation Fuel (SAF) [1][2]. The project is situated within the Delfzijl chemical park, a strategic location that supports the integration of sustainable chemistry into existing industrial infrastructure [1][3].
Production Capacity and Circular Economy
The DSL-01 facility is designed to produce 100,000 tonnes of SAF annually, addressing the critical need for renewable energy sources in the aviation sector [1][3]. Beyond aviation fuel, the plant will generate 35,000 tonnes of sustainable by-products, specifically bio-naphtha, bio-butane, and bio-propane [1]. This output structure aligns with circular economy principles by providing renewable feedstocks for the chemical industry, thereby replacing fossil-based raw materials and integrating the energy transition across multiple sectors [1]. The facility will utilise the Hydro-processed Esters and Fatty Acids (HEFA) pathway, a mature technology that allows for the conversion of renewable feedstocks into high-quality fuel [1].
A Landmark in Sustainable Financing
The financial structuring of DSL-01 represents a significant maturation point for the green energy sector. It is the first commercial-scale SAF plant to secure non-recourse project financing, a model where lenders rely on the project’s future cash flow for repayment rather than the general assets of the parent company [1][3]. This indicates a growing confidence among institutional investors in the viability of SAF technologies. A broad consortium of international lenders has backed the initiative, including ABN AMRO, Deutsche Bank, ING, and Mizuho, acting as the Mandated Lead Arranger [1][3][5]. The project also brings together a strategic group of shareholders, comprising KLM Royal Dutch Airlines, Macquarie Asset Management, and APG, with KLM committed as the main buyer of the fuel produced [1][3].
Decarbonisation and Regulatory Context
The production from DSL-01 is projected to reduce lifecycle greenhouse gas emissions by approximately 80% to over 90% compared to fossil kerosene [1][3]. This reduction is critical for the aviation industry as it faces stringent regulatory targets under the ReFuelEU Aviation Regulation. These mandates require fuel suppliers to blend 2% SAF at EU airports by 2025, a figure that must rise to 70% by 2050 [3]. With construction now underway, SkyNRG is positioning itself to meet these escalating demands, transforming from a developer into an owner-operator of production capacity to support future generations of sustainable flight [1][2].