KLM and SkyNRG have started construction on the DSL-01 facility, the Netherlands' first plant dedicated exclusively to producing sustainable aviation fuel. The plant is being developed by SkyNRG, which KLM co-founded in 2009, and is expected to begin commercial SAF production in 2028.
The Offtake Deal Behind the Construction Decision
KLM has signed a long-term agreement to purchase at least 75,000 tonnes of SAF annually from the facility, roughly 75% of its total planned production capacity, in a sustainability commitment valued at nearly €3 billion. KLM's own statement is direct about the causal relationship here: the long-term purchase agreement is what enabled the project's financing and development, not a commitment made after construction was already secured. That is the same underlying mechanism behind several other first-of-a-kind SAF projects covered in this series, an anchor offtake commitment de-risking the capital investment needed to build a dedicated production facility.
Why "Dedicated" Is the Operative Word
Much of the Netherlands' existing SAF supply comes from multi-product biorefineries that produce SAF alongside renewable diesel and other outputs, adjusting output mix based on relative pricing and demand. A facility built exclusively for SAF removes that flexibility, committing the plant's full capacity to aviation fuel regardless of how renewable diesel or other biofuel markets move. That is a bet that dedicated SAF production offers advantages, whether in process efficiency, certification simplicity, or long-term cost, significant enough to outweigh the flexibility a multi-product facility retains.
The Policy Target This Project Is Measured Against
KLM has framed the project explicitly against the Netherlands' national target of blending 14% SAF into aviation fuel by 2030, one of the more ambitious mandated blending targets among European countries, and stated that reaching it will require more investments of this kind, not this project alone. KLM has also stated that SAF remains three to four times more expensive than conventional jet fuel, and has called on the Dutch government to go beyond its current plans to promote alternative aviation fuels, specifically urging the creation of a national SAF fund, in line with recommendations from the "Route to Future Prosperity" report. That framing positions DSL-01 as a demonstration of what is required at scale, paired with an explicit acknowledgment that further government support, not just further private investment, is needed to close the remaining cost gap.
What Remains Between Now and 2028
Construction start is a firm, verifiable milestone, but a 2028 commercial production target leaves roughly two years for construction, commissioning and ramp-up to proceed as planned. Neither KLM's nor SkyNRG's public statements specify the facility's feedstock source, production technology, or total nameplate capacity beyond the 75,000-tonne KLM allocation, details that would normally accompany a project at this stage and may simply not yet be disclosed.
Source: KLM, 6 August 2026.
