SkyNRG and KLM launch construction of Netherlands’ first dedicated SAF plant, boosting sustainable aviation fuel production and decarbonization efforts.
SkyNRG and KLM Royal Dutch Airlines have officially commenced construction of DSL-01, the Netherlands’ first production facility exclusively dedicated to Sustainable Aviation Fuel (SAF). Situated in Delfzijl, the landmark project represents a significant step forward in expanding SAF production capacity within the country and supporting the aviation sector’s transition toward lower-carbon operations.
The facility, developed by SkyNRG, is notable not only for its scale but also for its pioneering financing structure. DSL-01 has become the first commercial-scale SAF project worldwide to secure non-recourse project financing, a development that reflects growing investor confidence in the viability and scalability of sustainable aviation fuel production. The project is expected to serve as a benchmark for future SAF developments globally. KLM has played a crucial role in making the project possible through a long-term purchase agreement and will act as the primary customer for the fuel produced at the plant.
Scheduled to begin operations in 2028, DSL-01 is expected to produce approximately 100,000 tonnes of sustainable aviation fuel annually. The plant will utilize low-grade and waste-based feedstocks, including used cooking oil, residual fats, and greases, transforming them into SAF through the Hydroprocessed Esters and Fatty Acids (HEFA) production pathway. This process delivers substantial lifecycle greenhouse gas emission reductions compared with conventional jet fuel. In addition to SAF, the facility will also generate renewable by-products such as propane, butane, and naphtha, further enhancing the project’s sustainability profile and resource efficiency.
Recognizing the project’s strategic significance, the Northern Netherlands Alliance (Samenwerkingsverband Noord-Nederland), acting on behalf of the European Just Transition Fund (JTF) partners in the region, has awarded SkyNRG a subsidy of €16 million. The funding reflects the project’s importance in accelerating the energy transition of the Northern Netherlands. Following the end of natural gas extraction activities in Groningen, the region has been actively pursuing economic diversification and sustainable industrial development. The investment in DSL-01 is expected to support this transformation by fostering innovation, stimulating economic growth, and creating future-ready employment opportunities.
The project is anticipated to generate more than 100 direct jobs, contributing to regional economic development while reinforcing the Northern Netherlands’ position as a leading European center for sustainable industry, clean energy innovation, and climate-focused industrial transformation. Beyond its local economic benefits, DSL-01 is expected to contribute meaningfully to European and global climate objectives by helping reduce emissions from the aviation sector.
Marjan Rintel, Chief Executive Officer of KLM, emphasized the airline’s commitment to sustainable aviation and highlighted the significance of the groundbreaking ceremony. She noted that KLM’s long-term offtake agreement has been instrumental in securing financing and bringing the facility to reality. As one of SkyNRG’s founding partners and the largest customer for the fuel produced by DSL-01, KLM views the project as an important milestone in increasing domestic SAF production and advancing the aviation industry’s sustainability agenda.
SkyNRG Chief Executive Officer Maarten van Dijk described the start of construction as a defining moment for the sustainable aviation sector. According to him, the project demonstrates that large-scale SAF production is progressing from concept to implementation. He stressed that collaboration with committed partners such as KLM is enabling the development of critical infrastructure needed to accelerate aviation’s transition toward lower emissions while strengthening Europe’s sustainable fuel value chain. He also highlighted the project’s role in creating employment and supporting industrial innovation in the Northern Netherlands.
The groundbreaking of DSL-01 underscores the need for continued policy support and investment across Europe to accelerate the development of SAF production capacity. SkyNRG and KLM have called for sustained cooperation among governments, airlines, fuel producers, and industry stakeholders to expand SAF availability and help the aviation sector achieve its long-term decarbonization goals.
