DSL-01 Moves from Development into Construction
SkyNRG and KLM marked the official start of construction of the DSL-01 sustainable aviation fuel facility in Delfzijl, the Netherlands, on May 28, 2026.
The project represents an important shift from proposed SAF capacity to physical infrastructure being built.
Located at the Delfzijl chemical park in the northern Netherlands, DSL-01 will be dedicated to the production of sustainable aviation fuel and renewable co-products.
Once fully operational in 2028, the facility is expected to produce approximately 100,000 tonnes of SAF annually.
SkyNRG reached financial close for the project in February 2026 following a development period of around seven years, allowing construction to move forward with permits and financing agreements in place.
Waste Oils and Residual Fats Will Supply the Plant
DSL-01 will use the Hydroprocessed Esters and Fatty Acids, or HEFA, pathway to convert residual fats, greases and used cooking oil into sustainable aviation fuel.
The facility is also designed to produce approximately 35,000 tonnes per year of renewable co-products including biobased propane, butane and naphtha.
SkyNRG expects the SAF initially produced at the site to deliver lifecycle greenhouse-gas reductions of around 80 percent compared with fossil jet fuel.
The company says that figure could eventually exceed 90 percent as the plant increases electrification and reduces its reliance on natural gas.
Technip Energies is responsible for engineering, procurement and construction, while KLM is the project's primary SAF offtaker through a long-term supply commitment.
Financing Marks an Important Milestone for SAF Projects
DSL-01 is notable not only for its production capacity but also for how the project has been financed.
SkyNRG describes the facility as the first commercial-scale SAF plant globally to secure non-recourse project financing.
The financing structure brings together shareholders including KLM, Macquarie Group and APG, alongside a consortium of international commercial lenders.
The project has also received €16 million in support through the European Just Transition Fund and is expected to create more than 100 direct jobs in the northern Netherlands.
For the wider SAF industry, the project provides a useful example of what it takes to move beyond announcements.
Long-term fuel demand, project financing, permitting, engineering and construction contracts all had to come together before physical construction could begin.
If DSL-01 starts production as planned in 2028, it will add a significant new source of European SAF supply at a time when ReFuelEU Aviation is steadily increasing mandated demand.
The project therefore represents more than another announced plant: it is an example of SAF capacity progressing into financed, permitted and physical construction.
Sources
SkyNRG — SkyNRG and KLM Celebrate Start of Construction on the Netherlands’ First Dedicated SAF Facility, May 28, 2026
SkyNRG — Financial Close and Start of Construction for DSL-01, February 12, 2026
Technip Energies — Technip Energies Awarded Contract for SkyNRG’s Sustainable Aviation Fuel Project