Asset manager APG, on behalf of its Dutch pension fund client ABP, is investing up to €250 million ( US$284.94 million ) in sustainable aviation fuel ( SAF ) producer and developer SkyNRG.

The funding will support the continued growth of SkyNRG’s platform, which includes a portfolio of capacity development projects, research and development activities, advisory services and a range of commercial innovative customer programmes.

As part of an investment round of up to €300 million, this investment allows SkyNRG to move forward with its plans to develop and construct SAF production facilities in Delfzijl, the Netherlands, as well as in Sweden ( Project SkyKraft ) and the United States ( Project Wigeon ). 

Amsterdam-headquartered SkyNRG is a Dutch frontrunner in the SAF industry with a strong track record of sourcing and selling SAF. It was founded in 2009, by among others, KLM Royal Dutch Airlines. SkyNRG’s platform for SAF aligns with APG and its pension fund client ABP’s path to significantly reduce carbon emissions worldwide and support innovative solutions for the energy transition within the Netherlands.

APG’s investment builds upon a €175 million investment in 2023 from Macquarie Asset Management ( MAM ), which is also increasing its overall investment to SkyNRG in conjunction with this funding round to approximately €225 million.

MAM and APG’s long-term commitments are enabling SkyNRG to develop facilities which are solely dedicated to the production of SAF and to further develop the market for SAF. SkyNRG works with partners such as KLM Royal Dutch Airlines, Microsoft and Boeing to reach these goals.

In this transaction, SkyNRG was advised by Evercore ( financial ) and Clifford Chance ( legal ), while APG was advised by RBC Capital Markets ( financial ) and Loyens & Loeff ( legal ).

Aviation, the companies say, is responsible for approximately 2.5% of global annual carbon dioxide ( CO2 ) emissions. As the 2050 net-zero target approaches, SAF provides a viable pathway to decarbonization; and the global SAF market, expected to be worth €12 billion annually by 2030, needs cost effective alternatives to fossil fuel.

“SkyNRG demonstrates an entrepreneurial spirit and a strong commercial focus,” says Arjan Reinders, APG’s head of infrastructure Europe. “SkyNRG represents the first investment in the SAF sector on behalf of our client, which is closely aligned with our ambition to create impact by investing at the forefront in energy transition assets that meet our investment criteria.”