Sweden backs SkyKraft eSAF project with €21 million grant
Sweden gave SkyKraft €21 million to push a Näsudden eSAF plant toward a 2027 final investment decision. The project could make up to 130,000 tonnes a year from renewable power and biogenic CO2.
SkyKraft on May 22 secured about €21 million from the Swedish Energy Agency’s Industriklivet initiative to advance feasibility work, design and engineering for a planned eSAF facility at Näsudden in the Port of Skellefteå. The joint venture, formed by SkyNRG and Skellefteå Kraft, is aiming for a final investment decision in 2027, making the grant an early-stage public capital push into one of the hardest parts of the aviation fuel buildout.
If built, the project is expected to produce up to 130,000 tonnes of eSAF a year using renewable electricity and biogenic CO2. That pathway matters because it does not depend on the same lipid feedstocks used in HEFA-based SAF, giving Europe another route as used cooking oil and other constrained inputs remain tight. In SkyNRG’s framing, SkyKraft is its first European scaling hub and a power-to-liquids project, not a standalone demonstration plant.
Industriklivet is intended to back industrial projects that cut fossil emissions, and the Swedish Energy Agency has linked the program to the wider need to reduce dependence on fossil imports. That policy logic gives the SkyKraft grant a second purpose beyond climate targets: it is also a resilience play in a market still shaped by geopolitical risk and volatile fuel supply chains. Skellefteå municipality has separately said the Port of Skellefteå is undergoing about SEK 1.4 billion of expansion to handle larger ships, higher cargo volumes and more efficient transport, infrastructure that could support projects of this scale.
SkyKraft also sits inside a broader SkyNRG pipeline. The company said Project Wigeon in Washington state is targeting 50 million gallons, or about 150,000 tonnes, a year of SAF and renewable diesel from renewable natural gas feedstocks, while DSL-01 in Delfzijl is its first dedicated SAF plant and is expected to produce 100,000 tonnes a year once operational. SkyNRG said DSL-01 reached financial close in February 2026, and the company has said it wants to develop additional SAF capacity by 2030, underscoring that SkyKraft is one step in a wider industrial buildout rather than an isolated grant recipient.
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