Sustainable aviation fuel earns investment from Dutch pension heavyweight
In a significant move towards energy transition, the Dutch public-sector pension giant ABP has committed €250 million to SkyNRG, a company aiming to develop and scale up the adoption of sustainable aviation fuels (SAF) globally. This investment is in line with ABP's ambition to create impact by investing in energy transition assets.
The commitment from ABP joins a growing trend among institutional investors, with large players such as PGGM, another Dutch pension fund, also investing in the SAF sector. Last year, PGGM invested €120 million in a French SAF firm, Elyse Energy, but this investment is separate from ABP's investment in SkyNRG.
The funding will support the construction of SAF production facilities in Delfzijl, Netherlands, Sweden (Project SkyKraft), and the United States (Project Wigeon). These facilities are part of a €300 million funding round for SkyNRG, but the investment by PGGM does not form part of this round for Elyse Energy.
SkyNRG's investment comes at a time when large airlines and aerospace manufacturers are also showing interest in sustainable aviation fuels. Companies like United Airlines, Delta Air Lines, American Airlines, Air Canada, and JetBlue Airways have committed substantial SAF purchase volumes and partnerships with SAF producers. Boeing has made significant investments, including backing SkyNRG Americas’ first dedicated SAF plant in the US, and advance purchases of SAF for its company operations.
The diverse investor base reflects the broad commitment from airlines, aerospace manufacturers, and financial investors aiming to scale SAF capacity, improve technology, and meet growing decarbonization mandates worldwide. Besides institutional investors, private equity, sovereign funds, and conglomerates are also targeting companies with proprietary technologies and scalable SAF production platforms, aligning with policy drivers such as the EU ReFuelEU mandate and the US Renewable Fuel Standard.
This marks ABP's first investment in the SAF sector, underscoring their commitment to supporting innovative solutions that drive the decarbonisation of the infrastructure industry. The investment forms part of ABP's strategy to create impact and contribute to a more sustainable future.
Sources: [1] SkyNRG Press Release, 2023 [2] Boeing Press Release, 2023 [3] European Commission Press Release, 2023 [4] JetBlue Airways Press Release, 2023
- The investment by ABP in SkyNRG, a company dedicated to scaling up sustainable aviation fuels (SAF), aligns with other institutional investors such as PGGM, who has also invested in the sector, highlighting a growing trend in finance towards supporting SAF.
- The funding received by SkyNRG, including ABP's €250 million commitment, will be utilized for SAF production facility construction in various locations, aiming to increase SAF capacity, advance technology, and meet global decarbonization mandates, as various airlines, aerospace manufacturers, and financial investors have pledged to do.
