• KLM will purchase at least 75,000 tonnes of sustainable aviation fuel each year, equal to 75% of the plant’s output.
• The long-term agreement represents a sustainability commitment of nearly $3.5 billion and helped SkyNRG secure project financing.
• Production is expected to begin in 2028 as the Netherlands works toward its national target of 14% SAF use by 2030.

Long-term demand unlocks Dutch SAF production

KLM and SkyNRG have started construction of the Netherlands’ first facility dedicated to sustainable aviation fuel production.

The SkyNRG Delfzijl plant, known as DSL-01, is expected to begin producing fuel in 2028. Once operational, it will supply about 100,000 tonnes of SAF each year.

KLM has committed to purchasing at least 75,000 tonnes annually. That represents 75% of the facility’s planned SAF output and nearly $3.5 billion in long-term spending.

The agreement gives SkyNRG a large, committed customer before production begins. Such contracts are crucial for capital-intensive climate infrastructure. They provide revenue certainty and help developers secure financing.

KLM co-founded SkyNRG in 2009 and has supported the development of the SAF market since then. Its long-term purchase commitment directly contributed to the financing and development of the Delfzijl project.

“As the first airline in the world, our long-term offtake agreement directly contributes to the financing and realization of this facility. Today, together with SkyNRG and other invited guests, we mark a milestone by celebrating the start of construction, making this project finally tangible. 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,” said Marjan Rintel, CEO of KLM.

SAF offers deep cuts in lifecycle emissions

Aviation remains difficult to decarbonize because long-distance aircraft still depend on energy-dense liquid fuels. Battery and hydrogen technologies are unlikely to replace conventional jet fuel across major international routes in the near term.

SAF can work within existing aircraft and fuel infrastructure. However, its climate value depends on the feedstocks, production process and energy used.

The fuel releases carbon dioxide during flight, much like fossil kerosene. Its overall lifecycle emissions can be substantially lower because the carbon comes from renewable or recycled sources.

According to KLM, SAF can reduce lifecycle carbon emissions by at least 65%. Some production pathways can deliver reductions above 90% compared with conventional kerosene.

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“Today’s milestone in Delfzijl shows that large-scale SAF production in the Netherlands is becoming a reality. We are proud to take this step together with KLM and our partners, whose long-term commitment has helped make this project possible. DSL-01 is an important step toward scaling SAF production and accelerating the transition to more sustainable aviation,” said Maarten van Dijk, CEO of SkyNRG.

Cost gap remains a barrier to wider adoption

Despite its emissions benefits, SAF remains three to four times more expensive than fossil kerosene. Limited production capacity, feedstock constraints and high development costs continue to restrict supply.

That price gap creates financial pressure for airlines operating on narrow margins. It also raises questions about how the transition will affect ticket prices, competitiveness and demand.

KLM is calling for stronger government support to expand production and reduce costs. The airline has proposed a national SAF fund, following recommendations in the Wennink report, “The Route to Future Prosperity.”

The Netherlands has set a national ambition of reaching 14% SAF use by 2030. By comparison, European rules require fuel supplied at covered EU airports to contain at least 6% SAF from 2030.

The new Dutch coalition agreement includes plans to expand alternative aviation fuels and support domestic production. The challenge will be converting those commitments into bankable incentives without weakening sustainability standards.

For executives and investors, DSL-01 shows how long-term corporate purchasing can unlock industrial decarbonization projects. It also exposes the limits of voluntary action.

One plant will not provide enough fuel to transform Dutch aviation. Replicating the model will require coordinated policy, reliable demand and substantial private capital. The Netherlands’ success could influence how other aviation hubs finance the next generation of low-carbon fuel infrastructure.