KLM and SkyNRG have started construction of the Netherlands’ first facility dedicated exclusively to the production of Sustainable Aviation Fuel (SAF), marking a major step in expanding the country’s low-carbon aviation fuel capacity, KLM reported.
The plant, being developed by SkyNRG, is expected to begin commercial SAF production in 2028.
KLM, which co-founded SkyNRG in 2009, has signed a long-term agreement to purchase at least 75,000 tonnes of SAF annually from the facility. The volume represents about 75% of the plant’s total production capacity and carries a sustainability commitment valued at nearly €3 billion.
The airline said the long-term purchase agreement has played a key role in enabling the financing and development of the project.
KLM said it has been investing for several years in reducing aviation emissions through fleet modernisation, quieter aircraft and greater fuel efficiency. The airline considers SAF one of the most effective options for lowering the aviation sector’s carbon footprint.
Although SAF releases similar carbon dioxide emissions as conventional jet fuel during flight, its lifecycle emissions—from production to combustion—are at least 65% lower and can exceed 90% compared with fossil-based kerosene, depending on the feedstock and production process.
KLM Chief Executive Officer Marjan Rintel said the airline’s long-term offtake agreement had directly supported the financing and construction of the facility, adding that the project represents an important milestone in expanding SAF production in the Netherlands and advancing more sustainable aviation.
SkyNRG Chief Executive Officer Maarten van Dijk said the project demonstrates that large-scale SAF production is becoming a reality in the Netherlands. He said the company’s partnership with KLM and other stakeholders, backed by long-term commitments, had made the project possible.
Despite the progress, KLM noted that SAF remains three to four times more expensive than conventional aviation fuel. The airline said further policy support will be required to increase production capacity and make SAF more affordable.
KLM welcomed the Dutch government’s plans to promote alternative aviation fuels and called for additional measures, including the creation of a national SAF fund, in line with recommendations made in the The Route to Future Prosperity report.
The airline said the DSL-01 project highlights the need for more similar investments if the Netherlands is to achieve its target of blending 14% SAF into aviation fuel by 2030.
