SkyKraft, the joint venture between SkyNRG and Swedish utility Skellefteå Kraft, has secured approximately €21 million ($24.4 million) in funding from the Swedish Energy Agency’s Industriklivet program to help advance its planned eSAF facility in Skellefteå, Sweden.
The funding will support the next phase of feasibility work for the project, including engineering and design activities needed ahead of a planned final investment decision (FID) in 2027.
The proposed facility, located at Näsudden in the Port of Skellefteå, aims to produce up to 130,000 tons of electro sustainable aviation fuel (eSAF) annually using renewable electricity and biogenic CO2.
Industriklivet, which is partly backed by the EU’s Next Generation EU programme, supports industrial projects focused on reducing fossil emissions and accelerating industrial decarbonisation.
European e-fuel sector faces growing pressure
The funding comes at a time when several European electrofuel and hydrogen-based fuel projects have struggled with rising costs, financing challenges, and uncertainty around long-term market conditions.
Despite these headwinds, the partners said demand for eSAF continues to strengthen as aviation decarbonization mandates tighten across Europe. Under the EU’s ReFuelEU Aviation regulation, airlines and airports will be required to steadily increase the share of sustainable aviation fuel used across the bloc over the coming decades.
SkyNRG CEO Maarten van Dijk said the latest funding reflects confidence in both the project and the broader long-term outlook for SAF markets. “eSAF is a complex and capital-intensive industry, but the long-term demand fundamentals are very strong,” he said.
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Skellefteå Kraft CEO Joachim Nordin added that the Näsudden site offers strong conditions for eSAF production due to access to renewable electricity, biogenic carbon dioxide, infrastructure, and regional industrial expertise.
The project is part of SkyNRG’s broader global SAF expansion strategy. Alongside SkyKraft, the company is also developing Project Wigeon in the US and the DSL-01 SAF plant in the Netherlands, which reached final investment decision earlier this year.
According to the Swedish Energy Agency, projects like SkyKraft could also help strengthen Europe’s energy resilience by reducing dependence on imported fossil fuels while building domestic low-carbon fuel production capacity.
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