SkyNRG will begin construction of the first sustainable aviation fuel (SAF) plant in the Netherlands, marking a significant step forward in Europe's transition to more sustainable aviation. Having secured financing for the DSL-01 plant, the Netherlands is set to welcome the first facility dedicated entirely to producing sustainable aviation fuel (SAF). SkyNRG will develop the project in the Delfzijl chemical park in the north of the country, representing a significant advance for the aviation industry and the low-carbon fuel market.
The plant will begin operations in mid-2028 and will have a projected capacity of 100,000 tons of SAF per year and an additional 35,000 tons of sustainable byproducts such as bio-based propane, butane, and naphtha. Beyond its production figures, DSL-01 is recognized as a benchmark case study demonstrating that SAF can scale up from pilot projects to large-scale industrial infrastructure.
The financial close of DSL-01 marks the end of seven years of development, planning, and regulatory approval. It also reflects SkyNRG's strategic evolution: for years, the company focused on SAF acquisition and distribution, but now it is becoming a large-scale owner and operator of production assets. The plant will use HEFA (hydroprocessed esters and fatty acids) technology, enabled by Topsoe's HydroFlex solution, to convert waste-derived feedstocks into aviation-grade fuel. This process is currently one of the most mature and commercially viable for SAF production in Europe.
From a climate perspective, the fuel initially produced is expected to achieve nearly 80% GHG emissions reductions over its life cycle compared to conventional fossil kerosene. As the plant's electrification increases and natural gas use decreases, reductions could exceed 90%. This is key, as SAF releases a similar amount of CO₂ during flight as traditional fuel, but significantly reduces its overall impact when considering production, transportation, and combustion.
The project will be carried out by Technip Energies as the EPC (engineering, procurement, and construction) contractor, providing additional technical expertise to ensure compliance with the schedule and industry standards.
Financial Structure
One of the most innovative aspects of the project is its financing structure. DSL-01 is the first commercial SAF plant on an industrial scale to secure non-recourse project financing. This type of financing means that debt repayment depends primarily on the performance of the project itself and not on the parent company's balance sheet, which is a sign of maturity and confidence on the part of the financial market.
The financial package brought together a broad consortium of international banks, including ABN AMRO, BNP Paribas, Deutsche Bank, ING, Mizuho, and Société Générale, among others. Crédit Agricole Corporate and Investment Bank acted as financial advisor, while Evercore acted as sole equity financing advisor and Clifford Chance provided legal advice. In addition, ING Bank N.V. was appointed as facility agent.
In terms of shareholders, the project has the backing of KLM, Macquarie Group, and APG, as well as minority investors and initial lenders such as Royal Schiphol Group and regional development funds. This mixed industry, financial, and institutional backing provides a solid foundation for long-term viability.
The fact that this type of financing has been achieved sets a precedent for future SAF projects, which have historically faced barriers due to high upfront costs and regulatory uncertainty. DSL-01 demonstrates that, when clear policy frameworks and long-term purchase agreements are established, it is possible to secure large-scale capital for decarbonization infrastructure.
KLM's Role
A key factor in securing financing was the long-term purchase agreement with KLM, which will be the main buyer of the SAF produced at the plant. The airline is a co-founder and shareholder of SkyNRG, and has been actively involved in the development of the project since 2009, announcing the Delfzijl facility in 2019. KLM was the first airline in the world to offer a long-term purchase guarantee for SAF, demonstrating the certainty of demand needed to attract investment. This commitment also responds to the growing climate obligations imposed by the European Union, which include long-term commitments and tighter emission reduction targets.
For European airlines, securing a reliable supply of SAF is no longer just a reputational issue, but a strategic requirement for regulatory compliance. In addition, corporate and social pressure to reduce the carbon footprint of air transport continues to increase.
Global Implications and next steps
DSL-01 is not only important for the Netherlands, but could influence the SAF global trajectory. The success of this first commercial-scale plant will set the pace at which sustainable fuel can move from being a niche solution to becoming a structural component of aviation's energy supply.
SkyNRG is already developing additional projects, such as the Wigeon Project in the Pacific Northwest with Boeing and the SkyKraft Project in northern Sweden, focused on e-SAF produced with renewable electricity, green hydrogen, and biogenic CO₂. This demonstrates an international expansion strategy aimed at diversifying technologies and geographies. However, SkyNRG and KLM have pointed out that more initiatives and government support will be needed to achieve targets such as the 14% blending target.
Altogether, DSL-01 represents a convergence between climate policy, private capital, and corporate strategy. Its development demonstrates that the decarbonization of aviation is technically feasible and financially possible, but also that its scaling up will depend on continued coordination between governments, airlines, producers, and investors.
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