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KLM, SkyNRG and SHV Energy announce project first European plant for sustainable aviation fuel
KLM Royal Dutch Airlines has committed itself for a 10-year period to the development and purchase of 75,000 tonnes of sustainable aviation fuel a year. KLM is the first airline in the world to invest in sustainable aviation fuel on this scale. SkyNRG, global market leader for sustainable aviation fuel (SAF), will develop Europe’s first dedicated plant for the production of SAF in Delfzijl. The production facility will specialise in producing SAF, bioLPG and naphtha, primarily using regional waste and residue streams as feedstock. The plant will be the first of its kind in the world. The construction of this facility, which is scheduled to open in 2022, is a concrete step towards fulfilling KLM’s sustainability ambitions and contributing to the broader industry plan “Smart and Sustainable”. SHV Energy, global leader in LPG distribution, will also invest in the facility and will purchase the bioLPG produced.
Sustainable aviation fuel is a necessary short-term option the commercial aviation industry has, to reduce CO2 emissions in the short term, in addition to fleet renewal and operational efficiency gains. However, not enough sustainable kerosene is currently being produced. The new production plant is a SkyNRG project, called DSL-01, and will be dedicated to production of sustainable aviation fuel. From 2022, the plant will annually produce 100,000 tonnes of SAF, as well as 15,000 tonnes of bioLPG, as a by-product. It will mean a CO2 reduction of 270,000 tonnes a year for the aviation industry. This is an important step for the industry to accommodate the need for carbon emission reduction on the one hand, and the increasing demand for sustainable aviation fuel on the other.
CO2 reduction of 85%
The feedstocks used for production will be waste and residue streams, such as used cooking oil, coming predominantly from regional industries. The facility will run on sustainable hydrogen, which is produced using water and wind energy. Thanks to these choices, this sustainable aviation fuel delivers a CO2 reduction of at least 85%, compared to fossil fuel. The use of SAF will also contribute to a significant decrease in ultra-fine particles and sulphur emissions. The construction of this facility is very much in line with KLM’s sustainability objectives and is an important step towards implementing the industry action plan “Smart & Sustainable”, which was drafted by twenty leading transport organisations and knowledge centres. Amsterdam Airport Schiphol will also be investing in the development of this facility.
I am proud that KLM is starting a project together with SkyNRG and SHV Energy to make the first plant for sustainable kerosene in Europe possible. The development of aviation has brought the world a lot, because it offers us the opportunity to connect people. This privilege comes with a great responsibility for our planet. KLM takes this very seriously and has therefore been investing in sustainability at various levels for years. By joining forces with various parties, we can accelerate the development of sustainable kerosene with this plant. From 2022 the factory will produce 100,000 tonnes of sustainable jet fuel per year, from which KLM will purchase 75,000 tonnes per year. With this, we save more than 200,000 tons of CO2 emissions per year, which for example equals the fuel consumption of 1,000 KLM flights between Amsterdam and Rio de Janeiro."
Pieter Elbers, president-director KLM
"We are extremely proud that we can announce this project today, and with such strong parties we can realize this in the Netherlands. This project is for us, our partners, an important milestone in the further scaling up of the market for sustainable kerosene. We are the first to make this step on this scale and we hope it will set an example for the rest of the industry in the transition to a sustainable future for aviation."
Maarten van Dijk, executive director van SkyNRG
"We are proud of the progressive cooperation with SkyNRG and KLM, with which we can make a positive contribution to the energy transition. This investment fits in well with SHV Energy's strategy to further increase the share of sustainably produced energy products. Our customers in Europe, who are often not connected to the natural gas network, rely on SHV Energy to meet their energy needs in an efficient, clean and safe way. As a pioneer in biopropane, we are delighted to be able to add 15,000 tonnes of biopropane to our range every year. This translates to more than 35,000 tons of CO2 reduction."
Bram Gräber, CEO SHV Energy
Fuel meets the highest sustainability standards
SkyNRG’s independent Sustainability Board advises on whether the fuel meets the highest sustainability standards, thereby ensuring that the fuel (produced from waste streams) will not have a negative impact on the food supply and environment. There will be absolutely no use of food crops, such as soya oil and palm oil (or by-products such as PFAD and POME), for production. The board includes representatives from WWF International, the European Climate Foundation, Solidaridad Network and the University of Groningen. Furthermore, the sustainability of the chain and related products are ensured through certification by the Roundtable on Sustainable Biomaterials (RSB), the highest possible certification standard for sustainable fuels.
In addition to KLM and SHV Energy, SkyNRG has joined hands with various other partners in the Netherlands and beyond, on the DSL-1 project: EIT Climate-KIC, Royal Schiphol Group, GROEIfonds, NV NOM, Groningen Seaports, Nouryon, Gasunie, Arcadis, TechnipFMC, Haldor Topsoe, Desmet Ballestra, Susteen Technologies, and MBP Solutions. These partners will be involved in various phases of the project.
"From the first plans in 2016, this project has been thoroughly discussed with the SkyNRG Sustainability Board. We believe in the steps that have been taken to ensure sustainability performance, especially with regard to the strict feedstock sourcing strategy."
Jenny Walther-Thoss, WWF Member of SkyNRG’s independent Sustainability Board
"We are delighted and proud that KLM and SkyNRG are committed to RSB certification of sustainable aviation fuel. Our standards are regarded worldwide as the best in their class. Our 12 comprehensive principles include greenhouse gas emissions, human and labor rights, practices to maintain soil health and water use, and rural and social development. None of the other standards uses such a wide range of criteria."
Rolf Hogan, executive director RSB
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