Macquarie Asset Management (MAM), a global financial services firm, has announced an investment of up to €175M in Amsterdam’s SkyNRG. This investment, made through the Macquarie GIG Energy Transition Solutions (MGETS) Fund, is intended to boost the development of Sustainable Aviation Fuels (SAF).
The Green Investments team at MAM will spearhead a new investment aimed at fostering the growth of SkyNRG, supporting its ambition to become a leading producer in the Sustainable Aviation Fuels (SAF) sector.
Mark Dooley, the Global Head of MAM Green Investments, comments on this development, “We have established ourselves in supporting companies at the forefront of the energy transition. This investment in SAF marks an important and exciting milestone for us.”
He further adds, “SkyNRG has been at the forefront of SAF innovation, characterized by their entrepreneurial approach and strong commercial acumen. We are excited to work alongside the SkyNRG team as they expand their operations and contribute to innovative solutions for decarbonizing the aviation sector.”
SkyNRG plans to allocate the funding towards the development and operation of Sustainable Aviation Fuel (SAF) production facilities. The company aims to establish dedicated facilities in both Europe and the US by the year 2030.
The Amsterdam-headquartered firm has also forged significant partnerships with major entities such as KLM Royal Dutch Airlines and Boeing. These partnerships include long-term commitments for SAF purchases, potentially amounting to up to €4B.
Philippe Lacamp, CEO of SkyNRG, emphasizes the urgency of this development: “To achieve the aviation industry’s net-zero objectives, it’s imperative that we expand SAF production capacity now.”
He adds, “We are immensely proud to receive this strategic investment from Macquarie, and we are confident that their support, alongside that of our current shareholders, will provide the necessary resources and insight to fast-track our progress in becoming a key player in the SAF sector.”
Powering a New Phase of Advancement in Aviation Industry
SkyNRG, established over 14 years ago by Theye Veen and Maarten Van Dijk, is dedicated to boosting the demand and production of Sustainable Aviation Fuel (SAF) in line with the aviation industry’s commitment to achieving net-zero emissions by 2050.
Pioneers in the field, SkyNRG was the first to supply SAF for a commercial flight in 2011. With a history of supplying over 40 airlines worldwide, the company is now focusing on building dedicated production facilities to ease the shift from traditional fossil jet fuels to sustainable alternatives.
The company notes a growing momentum in the SAF industry, driven by corporate commitments to achieving net-zero emissions and increased political and regulatory backing. Key initiatives such as the European Union’s ReFuelEU blending mandate and the Biden Administration’s SAF Grand Challenge in the U.S., coupled with the tax incentives offered by the Inflation Reduction Act, are contributing to this growth.
SkyNRG anticipates that these incentives could lead to investments up to €650 billion by 2050, significantly hastening the aviation industry’s transition from fossil-based jet fuels to more sustainable options.
Reducing Carbon Emissions in the Aviation Sector
The aviation sector, accountable for 2.5% of the world’s CO2 emissions, is actively working towards decarbonization by adopting Sustainable Aviation Fuel (SAF). SAF, sourced from renewable materials, can either replace or be mixed with conventional jet fuel.
SkyNRG’s Life Cycle Analysis has shown that jets using their SAF can achieve a minimum reduction of 75% in emissions compared to traditional fossil jet fuel throughout its lifespan.
In a bid to further mitigate emissions, SkyNRG provides the Fly On SAF online platform. This tool enables customers to assess and neutralize their flight emissions by purchasing SAF. This initiative is a significant step towards promoting environmental sustainability in air travel.
About Macquarie Asset Management
Macquarie Asset Management, renowned for managing assets worth around €543 billion globally, specializes in a diverse range of sectors. These include infrastructure, green investments, real estate, agriculture, asset finance, private credit, equities, fixed income, and multi-asset solutions.
As a division of the Macquarie Group, established in 1969, this financial conglomerate employs over 21,000 individuals across 34 markets. It provides a broad spectrum of services such as asset management, finance, banking, advisory services, as well as risk and capital solutions in various industries.