Sustainable aviation fuel receives investment from a substantial Dutch pension firm
In a significant move towards decarbonising the aviation industry, APG, the investment manager for Dutch public-sector pension giant ABP, has committed €250 million to SkyNRG, a leading player in sustainable aviation fuel (SAF) production. This investment forms part of a €300 million funding round for SkyNRG.
The strategic investment underscores ABP's commitment to supporting innovative solutions that drive the decarbonisation of the infrastructure industry. This investment in SkyNRG is aligned with ABP's ambition to create impact by investing in energy transition assets.
SkyNRG aims to develop and scale up the adoption of SAF globally. The funds will support the construction of SAF production facilities in Delfzijl, the Netherlands, Sweden, and the United States.
The SAF investor ecosystem consists of private equity, airlines, energy majors, aircraft manufacturers, and government-backed funds and incentives working in concert to scale up sustainable aviation fuel production and commercialization worldwide. Institutional investors, recognising the long-term potential of the sector, are actively funding SAF projects and infrastructure.
Private equity firms such as Bain Capital (investing in EcoCeres) and Brookfield Asset Management (investing in Infinium) are among those actively funding SAF projects. Several major airlines, including United Airlines, Delta Air Lines, Air France-KLM, British Airways (IAG), Qantas, American Airlines, Alaska Airlines, and SWISS, are also investors and partners in SAF development.
Traditional oil and gas giants like Shell, Neste, TotalEnergies, and ExxonMobil are investing in SAF production facilities and technology to transition their refining infrastructures towards sustainable fuels. Companies like Boeing, Airbus, and Honeywell are also investing in SAF initiatives to ensure technology compatibility and promote broader adoption.
Governments are providing direct financial backing, research funding, and grants to accelerate SAF development. For example, the UK government recently awarded £63 million to 17 UK SAF companies to scale production and create 1,400 jobs. Europe’s Sustainable Transport Investment Plan and the UK’s Revenue Certainty Mechanism are key policy-backed initiatives encouraging investment flow and risk reduction in SAF projects.
PGGM, another Dutch pension fund, has also committed €120 million to a French SAF firm, Elyse Energy. In 2023, SkyNRG received backing from infrastructure manager Macquarie Asset Management (MAM), which invested €175 million and is now increasing its overall investment to €225 million.
This marks ABP's first investment in the SAF sector, signalling a growing trend among institutional investors to support the development of sustainable aviation fuels globally. The investment is expected to contribute significantly to the growth and commercialisation of SAF, bringing us one step closer to a more sustainable aviation industry.
ABP's investment in SkyNRG, a leading player in sustainable aviation fuel (SAF) production, reflects their ambition to invest in energy transition assets, particularly those that address climate-change issues in the environmental-science sector. This strategic move in the SAF sector, initially valued at €250 million, is aligned with the increasing trend among institutional investors worldwide to support the development of sustainable aviation fuels.
