Swedish SAF Project Receives Major Funding Boost

SkyKraft, the joint venture between sustainable aviation fuel producer SkyNRG and Swedish power company Skellefteå Kraft, has received a €21 million grant from the Swedish Energy Agency’s Industriklivet Initiative to support the development of the planned sustainable aviation fuel (SAF) production facility in the port city of Skellefteå.

Industriklivet co-finances industrial projects that reduce fossil emissions, and this award will support the next phase of Project SkyKraft’s feasibility work, including the design and engineering activities needed to prepare for final investment decision (FID) in 2027. Once operational, the facility will produce up to 130,000 tonnes of eSAF a year using renewable electricity and environmental CO2.

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

With jet fuel prices continuing to soar amid a global fuel crisis, and many airlines lagging behind their targets for implementing eSAF, the grant comes at an important moment for the renewable fuels sector in Europe.

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