SkyKraft, the joint venture between SkyNRG and Swedish power producer Skellefteå Kraft, has secured approximately €21 million in funding from the Swedish Energy Agency through its Industriklivet Initiative to support development of a planned electro-sustainable aviation fuel (eSAF) facility at Näsudden in the Port of Skellefteå.
The funding, provided under the Industriklivet programme as part of the European Union’s Next Generation EU initiative, will help finance the next stage of feasibility work for the project, including engineering and design activities required ahead of a planned Final Investment Decision (FID) in 2027.
Image Source: SkyNRG
Once operational, the SkyKraft facility is expected to produce up to 130,000 tonnes of eSAF annually using renewable electricity and biogenic carbon dioxide. The project forms part of broader efforts to decarbonise the aviation sector and expand sustainable aviation fuel production capacity across Europe.
The grant comes amid continued financing pressures affecting several electrofuel developments across Europe. However, support from Industriklivet is seen as a sign of confidence in SkyKraft’s long-term commercial prospects, industrial partnerships, and business model. Industry demand for eSAF continues to grow, driven by European regulatory mandates and aviation sector emissions reduction targets.
SkyNRG Chief Executive Officer and Co-Founder Maarten van Dijk said the funding demonstrates support for projects capable of scaling sustainable aviation fuel production in Europe. He noted that while eSAF development remains capital intensive, long-term market fundamentals remain strong due to increasing demand for low-carbon aviation fuels.
Skellefteå Kraft Chief Executive Officer Joachim Nordin said the funding also highlights the strategic importance of the project for both Sweden’s industrial resilience and the aviation industry’s energy transition. According to Nordin, feasibility studies have confirmed that Näsudden offers favourable conditions for eSAF production, including access to renewable electricity, biogenic carbon dioxide, infrastructure, and regional industrial expertise.
Caroline Asserup, director general of the Swedish Energy Agency, said the project supports efforts to reduce reliance on imported fossil fuels while simultaneously strengthening domestic aviation fuel production and lowering emissions.
SkyKraft represents SkyNRG’s third major sustainable aviation fuel development project. It joins Project Wigeon in the United States, which focuses on renewable natural gas-to-SAF production, and DSL-01 in the Netherlands, a large-scale SAF facility that recently reached Final Investment Decision earlier this year.
Together, the projects reflect continued momentum in the global sustainable aviation fuel sector, particularly for developments backed by established industrial partners and supported by long-term regulatory demand.
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