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36 min ago 3 min read
A Swedish power-to-liquid sustainable aviation fuel (SAF) project has received a €21m ($24m) grant from the Swedish Energy Agency to advance e-SAF production.
SkyKraft is a joint venture between SkyNRG and Swedish power company Skellefteå Kraft.
The funding from Industriklivet, part of Next Generation EU which co-finances industrial projects that reduce fossil emissions, will help spur the next phase of feasibility work for the e-SAF facility at Näsudden in the Port of Skellefteå, ahead of a planned final investment decision next year.
SkyKraft aims to produce up to 130,000 tonnes of e-SAF annually using renewable electricity and biogenic CO₂.
The grant comes at an important moment for the renewable fuels sector in Europe, which is grappling with massive regulatory demand and a severe supply crunch.
Driven by the EU’s Renewable Energy Directive (RED III) and the ReFuelEU Aviation mandate, consumption is soaring, but local production is severely bottlenecked by a shortage of waste oils and fats.
SkyNRG CEO & Co-Founder Maarten van Dijk said, “This support is a strong signal that SkyKraft represents the kind of project Europe needs to scale SAF production. e-SAF is a complex and capital-intensive industry, but the long-term demand fundamentals are very strong.”
Joachim Nordin, CEO of Skellefteå Kraft, said 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 e-SAF production. This includes access to renewable electricity and biogenic carbon dioxide required for production,” he said.
Caroline Asserup, Director General at Swedish Energy Agency, said the geopolitical situation and state of 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,” she said.
Robert Schuetzle, CEO of e-fuel producer Infinium, recently told an that long-term green hydrogen-based SAF deals are accelerating in both compulsory and voluntary markets.
