KLM and SkyNRG Mark Start of Construction for Netherlands’ First SAF Production Plant

Airline commits to long-term sustainable aviation fuel offtake as Dutch SAF production capacity expands

KLM and SkyNRG have marked the start of construction of the Netherlands’ first large-scale sustainable aviation fuel (SAF) production facility, with the project expected to begin supplying fuel from 2028.

The plant, known as DSL-01 and located in Delfzijl, is intended to support the scale-up of SAF production in the Netherlands as the aviation sector works to reduce lifecycle carbon emissions.

Long-term SAF agreement supports project financing

KLM, which co-founded SkyNRG in 2009, has committed to purchasing at least 75,000 tonnes of SAF annually from the facility, representing approximately 75% of the plant’s projected production capacity.

According to the company, the long-term agreement represents a sustainability commitment valued at nearly €3 billion and has contributed to enabling financing and development of the project.

Marjan Rintel, CEO of KLM, said:

“As the first airline in the world, our long-term offtake agreement directly contributes to the financing and realization of this facility.”

She added:

“I am proud that KLM, as a co-founder of SkyNRG and the largest purchaser of the fuel, is taking an important step in scaling up SAF production in the Netherlands and further advancing the sustainability of aviation.”

SAF seen as key pathway for aviation decarbonisation

Sustainable aviation fuel is increasingly viewed as one of the primary near-term solutions for reducing emissions from the aviation sector, particularly for long-haul operations where alternatives such as battery-electric propulsion remain commercially limited.

While SAF produces similar CO₂ emissions during combustion compared with conventional kerosene, lifecycle emissions from production through use can be significantly lower depending on feedstock and production methods.

According to KLM, SAF can reduce lifecycle CO₂ emissions by at least 65% and potentially more than 90% compared with fossil-based jet fuel.

The aviation industry is continuing to expand investments in SAF production capacity as governments introduce blending mandates and airlines pursue decarbonisation targets.

Industry highlights cost and scaling challenges

Despite increasing investment, SAF remains substantially more expensive than conventional aviation fuel.

KLM stated that SAF currently costs approximately three to four times more than fossil kerosene, highlighting the need for additional policy support and production scale-up.

The company welcomed proposals in the Dutch coalition agreement aimed at supporting alternative aviation fuels and called for additional measures to accelerate SAF deployment.

KLM pointed to recommendations from the Wennink report, “The Route to Future Prosperity,” including the creation of a national SAF fund to support industry growth.

Dutch SAF targets driving production expansion

The DSL-01 facility is expected to contribute toward the Netherlands’ target of achieving a 14% SAF blending ratio by 2030.

SkyNRG CEO Maarten van Dijk said:

“Today’s milestone in Delfzijl shows that large-scale SAF production in the Netherlands is becoming a reality.”

He added:

“DSL-01 is an important step toward scaling SAF production and accelerating the transition to more sustainable aviation.”