- Washington state awarded $1.5M for SkyNRG’s $600M-$800M sustainable aviation fuel (SAF) facility, set to open in 2029 at Wallula Gap.
- SkyNRG will produce SAF and diesel from waste sources like landfills and manure, utilising Washington’s climate incentives and fast-tracked permits.
- SAF production lags behind industry goals, with global output in 2024 reaching just 0.3% of jet fuel needs; SkyNRG’s plant aims to help but won’t be operational until 2029.
Washington State awarded a $1.5 million grant to support the development of a sustainable aviation fuel (SAF) and renewable diesel production facility at Wallula Gap on the Columbia River. Dutch company SkyNRG plans to open the plant in 2029. However, the grant covers only a tiny part of the $600 million to $800 million needed for the project.
SkyNRG’s Project Wigeon will rise in the Columbia Basin, near Walla Walla and the Tri-Cities. The company has already started securing funding from existing investors. The facility will produce SAF and diesel using biogenic methane from landfills, sewage treatment plants, and animal manure.
SAF offers a cleaner alternative to conventional jet fuel and can reduce aircraft emissions when blended with fossil fuels. SkyNRG chose Washington state for its favourable climate policies and incentives. The state provides tax credits worth $1 to $2 per gallon of SAF, which currently costs two to three times more than regular jet fuel, priced at $2.35 per gallon.
Washington state also speeds up permitting and environmental reviews for clean energy projects. “This project aligns with our clean technology priorities,” said Joe Nguyen, director of the Washington State Department of Commerce. He emphasised that the plant would create manufacturing jobs and strengthen the local economy.
In November, the Port of Walla Walla sold SkyNRG a 165-acre site at Wallula Gap for $10.7 million. The land, now used for farming, is undergoing environmental review by the state and Walla Walla County.
The facility will include tanks and pools to digest waste into biogas, which will then be processed into SAF or diesel. The same area will host other industrial projects, such as a data centre and factories for batteries and building materials.
Governor Bob Ferguson’s office highlighted the creation of 600 construction jobs and 100 production jobs once the plant begins operations.
SAF Production Falls Short of Targets
The airline industry set ambitious goals for SAF, aiming to use it for 65% of the emissions reductions needed to reach net-zero carbon by 2050. However, SAF production has not kept pace. The International Air Transport Association (IATA) estimated that global SAF production in 2024 would total only 343 million gallons—just 0.3% of global jet fuel production. This amount fell short of the 500 million gallons initially projected.
Seattle-Tacoma International Airport alone consumes 600 million gallons of jet fuel annually. IATA attributed part of the production shortfall to delays at key U.S. SAF facilities, which have pushed back their production ramp-up to 2025.
SkyNRG’s Wallula Gap project also lags behind schedule. Construction will start in 2026, and SAF and diesel production will begin in 2029, adding to the industry’s delayed progress toward emissions reduction goals.