SHV Energy SkyNRG and KLM announce project to build first European plant

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 produce 100,000 tonnes of SAF annually, as well as 15,000 tonnes of bioLPG for SHV Energy, 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.

Bram Gräber, CEO of SHV Energy: “We are proud of our innovative collaboration with SkyNRG and KLM, enabling us to make a positive contribution to energy transition. This investment closely aligns with SHV Energy’s strategy to further increase the share of sustainably produced energy products. Our customers in Europe, many of whom are not connected to the natural gas grid, rely on SHV Energy to meet their energy needs efficiently, sustainably and safely. As pioneers in the field of bioLPG, we are pleased that this project will add 15,000 tonnes of bioLPG to our annual supply. This amounts to more than 35,000 tonnes of CO2 reduction.”

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.

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 is ensured through certification by the Roundtable on Sustainable Biomaterials (RSB), the highest possible certification standard for sustainable fuels.

Partners
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.