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Macquarie Asset Management to invest up to €175M in SAF producer SkyNRG

Australia-based Macquarie Asset Management will support the growth of Sustainable Aviation Fuels (SAF) with an initial investment of up to €175 million in SkyNRG via the Macquarie GIG Energy Transition Solutions (MGETS) Fund.

This new investment led by Macquarie Asset Management’s specialist Green Investments team will support SkyNRG’s next phase of growth and help achieve its ambitious goal to become a major SAF producer through the development and operation of SAF production facilities.

By 2030 SkyNRG aims to build its dedicated SAF facilities in Europe and the US, in cooperation with strategic offtake partners. To date, SkyNRG has secured partnerships with, amongt others, KLM Royal Dutch Airlines and Boeing with envisaged long term commitments of up to €4 billion in SAF purchases.

SkyNRG has been at the forefront of the development of SAF since it was founded more than 14 years ago. Since then, SkyNRG has expanded and is active in R&D, advisory services and in selling SAF. Today, the company provides SAF to airlines and corporates around the world and is still one of the leading and most active participants on the SAF market.

The SAF industry is benefitting from significant tailwinds, including voluntary corporate offtake commitments aligned to net-zero targets and growing political and regulatory support. This includes the European blending mandate (ReFuelEU) that requires the use of SAF, and the Biden Administration’s SAF Grand Challenge and the Inflation Reduction Act in the US, which is encouraging the use of SAF via strong tax incentives. By 2050, SkyNRG estimates that such incentives will create demand for up to €650 billion of investment in the sector and accelerate the aviation industry’s transition away from fossil jet fuels.

The aviation sector contributes around 2.5% of global annual CO2 emissions and as the transition to net zero accelerates, SAF offers a route towards decarbonizing the sector. SAF uses renewable feedstocks and can be mixed in with or replace fossil jet fuel. Based on SkyNRG’s own Life Cycle Analysis, the use of its SAF in jets can result in a minimum emissions reduction of 75% compared to fossil jet fuel over its life span.

This transaction follows a series of investments by Macquarie Asset Management in emerging green technologies across Europe, including green hydrogen and biomethane producers HyCC and VORN Bioenergy.

The transaction is subject to certain closing conditions and the satisfaction of transaction terms.

Macquarie Asset Management to invest up to €175M in SAF producer SkyNRG

Australia-based Macquarie Asset Management will support the growth of Sustainable Aviation Fuels (SAF) with an initial investment of up to €175 million in SkyNRG via the Macquarie GIG Energy Transition Solutions (MGETS) Fund.

This new investment led by Macquarie Asset Management’s specialist Green Investments team will support SkyNRG’s next phase of growth and help achieve its ambitious goal to become a major SAF producer through the development and operation of SAF production facilities.

By 2030 SkyNRG aims to build its dedicated SAF facilities in Europe and the US, in cooperation with strategic offtake partners. To date, SkyNRG has secured partnerships with, amongt others, KLM Royal Dutch Airlines and Boeing with envisaged long term commitments of up to €4 billion in SAF purchases.

SkyNRG has been at the forefront of the development of SAF since it was founded more than 14 years ago. Since then, SkyNRG has expanded and is active in R&D, advisory services and in selling SAF. Today, the company provides SAF to airlines and corporates around the world and is still one of the leading and most active participants on the SAF market.

The SAF industry is benefitting from significant tailwinds, including voluntary corporate offtake commitments aligned to net-zero targets and growing political and regulatory support. This includes the European blending mandate (ReFuelEU) that requires the use of SAF, and the Biden Administration’s SAF Grand Challenge and the Inflation Reduction Act in the US, which is encouraging the use of SAF via strong tax incentives. By 2050, SkyNRG estimates that such incentives will create demand for up to €650 billion of investment in the sector and accelerate the aviation industry’s transition away from fossil jet fuels.

The aviation sector contributes around 2.5% of global annual CO2 emissions and as the transition to net zero accelerates, SAF offers a route towards decarbonizing the sector. SAF uses renewable feedstocks and can be mixed in with or replace fossil jet fuel. Based on SkyNRG’s own Life Cycle Analysis, the use of its SAF in jets can result in a minimum emissions reduction of 75% compared to fossil jet fuel over its life span.

This transaction follows a series of investments by Macquarie Asset Management in emerging green technologies across Europe, including green hydrogen and biomethane producers HyCC and VORN Bioenergy.

The transaction is subject to certain closing conditions and the satisfaction of transaction terms.

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