en.Wedoany.com Reported - SkyKraft, a joint venture between SkyNRG and Swedish utility Skellefteå Kraft, has received approximately €21 million in funding from the Swedish Energy Agency's Industriklivet program to advance its planned eSAF facility in Skellefteå, Sweden. The funding will support the next phase of feasibility work for the project, including the engineering and design activities required ahead of a final investment decision targeted for 2027. The proposed facility, located at Näsudden in the Port of Skellefteå, is planned to produce up to 130,000 tonnes of electro-sustainable aviation fuel per year using renewable electricity and biogenic carbon dioxide.
The Industriklivet program, partly funded by the EU's Next Generation EU initiative, focuses on projects that reduce fossil fuel emissions and accelerate industrial decarbonization. The funding comes as multiple electrofuel and hydrogen-based fuel projects across Europe face rising costs, financing challenges, and uncertainty over long-term market conditions.
Despite these headwinds, the partners say demand for eSAF continues to strengthen as mandates for aviation decarbonization tighten across Europe. Under the EU's ReFuelEU Aviation regulation, airlines and airports will be required to progressively increase the share of sustainable aviation fuel used across the bloc over the coming decades. Maarten van Dijk, CEO of SkyNRG, said the latest funding reflects confidence in the project and the broader SAF market's long-term prospects. He described eSAF as a complex and capital-intensive sector, but one with very strong long-term demand fundamentals.
Joachim Nordin, CEO of Skellefteå Kraft, added that the Näsudden site offers favorable conditions for eSAF production due to the accessibility of renewable electricity, biogenic carbon dioxide, infrastructure, and regional industrial expertise. The project is part of SkyNRG's global SAF expansion strategy. In addition to SkyKraft, the company is also developing Project Wigeon in the United States and the DSL-01 SAF plant in the Netherlands, which reached a final investment decision earlier this year.
The Swedish Energy Agency noted that projects like SkyKraft can help strengthen Europe's energy resilience by reducing dependence on imported fossil fuels while building domestic capacity for low-carbon fuel production.
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