Target Information

SkyNRG, established in 2009 and headquartered in Amsterdam, Netherlands, is a pioneer in the Sustainable Aviation Fuel (SAF) sector. The company has been instrumental in the development and supply of SAF, partnering with major airlines, including KLM Royal Dutch Airlines. SkyNRG aims to facilitate the transition to sustainable aviation by focusing on innovative fuel solutions that reduce the carbon footprint of air travel.

As part of its growth strategy, SkyNRG oversees a comprehensive portfolio that includes capacity development projects, research and development initiatives, advisory services, and various commercial programs tailored for customers. The company's commitment to sustainability and its expertise in SAF position it as a leader in the aviation fuel market.

Industry Overview in the Netherlands

The Dutch aviation sector has seen a significant push towards sustainability in recent years, with a growing emphasis on reducing greenhouse gas emissions. The Netherlands is proactively developing policies and frameworks that encourage the adoption of SAF, integrating it into national climate goals and airline sustainability commitments. This movement is supported by government incentives and collaboration with industry stakeholders.

Furthermore, the European Union is fostering a favorable environment for sustainable fuels, aiming for climate-neutral aviation by 2050. As a result, the SAF market is gaining traction, driven by regulatory support, technological advancements, and a strong demand for environmentally friendly solutions from airlines and regulatory bodies alike.

Investment in SAF production facilities is crucial to meeting the increasing demand for sustainable aviation fuels. In response, several initiatives are underway to enhance the production capacity of these fuels in the Netherlands, including projects specifically targeting the construction of SAF plants. This aligns with the broader European strategy to scale up the use of sustainable fuels in aviation.

Moreover, the Dutch government and aviation industry are exploring partnerships and funding opportunities to support research and technological developments in SAF. This initiatives are anticipated to bolster the industry and create a robust ecosystem for the growth of sustainable aviation fuel solutions in the country.

Rationale Behind the Deal

The strategic investment of up to €250 million by APG, on behalf of ABP, into SkyNRG aims to accelerate the development and adoption of sustainable aviation fuels globally. By tapping into SkyNRG's expertise and existing framework, APG seeks to play a significant role in fostering innovation in the aviation sector's transition to sustainable energy sources.

This funding not only supports the growth of SkyNRG's production capabilities but also aligns with the growing global demand for environmentally responsible aviation practices. The investment represents a commitment to sustainability in the financial sector while addressing the pressing challenges of climate change.

Information About the Investor

APG is a leading Dutch pension investment company that manages the assets of ABP, one of the largest pension funds globally. With a focus on responsible investment, APG prioritizes sustainability and the promotion of innovative solutions that contribute to long-term value creation for its pension fund clients. APG's strategy includes a commitment to environmental, social, and governance (ESG) considerations in its investment decisions.

Macquarie Asset Management (MAM), a prominent player in the global investment landscape, has a vested interest in renewable energy and sustainable infrastructure. By increasing its investment in SkyNRG to approximately €225 million, MAM demonstrates its commitment to transitioning to a low-carbon economy and supporting sustainable initiatives within the aviation sector.

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From an investment perspective, the deal marks a significant opportunity for APG and its clients, providing access to a rapidly growing market segment in the aviation industry. The shift towards sustainable aviation fuels presents both a challenge and an opportunity for investors, and this investment aligns with global sustainability targets and regulatory changes.

SkyNRG's established position in the industry, along with its plans for capacity expansion in multiple locations, suggests that it will play a crucial role in the future of aviation fuel alternatives. This makes it an attractive investment for stakeholders looking to capitalize on the transition towards sustainable energy solutions.

Moreover, with government and EU policies increasingly favoring the adoption of SAF, the growth prospects for SkyNRG appear promising. As the demand for sustainable fuels intensifies, investors can expect favorable returns drawn from a growing market driven by environmental necessities and regulatory frameworks.

In conclusion, the investment by APG and MAM into SkyNRG is not only a strategic move to leverage the increasing need for sustainable aviation but also a testament to the potential profitability of investing in environmentally friendly technologies. Given the industry's trajectory, this deal represents a significant step forward in realizing a sustainable aviation future.

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