A Cross Continental Pair With a Plan for Green Jet Fuel

Japan’s Sumitomo and Denmark’s Skovgaard join forces to turn organic waste into e-fuel

13 Jun 2025

A Japanese industrial giant and a Danish clean energy veteran are betting that the future of flight begins in a manure pit.

Sumitomo Corporation and Skovgaard Energy have created a joint venture called North Sky A/S that aims to turn cattle waste and other agricultural leftovers into synthetic aviation fuel. Announced in June 2025, the partnership blends global investment with on-the-ground know-how from one of Europe’s most advanced biogas markets.

The venture plans to turn organic waste into biogas, capture the carbon dioxide that rises from it, and then merge that gas with green hydrogen made from renewable electricity. The result is e-fuel, a form of sustainable aviation fuel still maturing but widely seen as a cornerstone of cleaner air travel.

If all goes to plan, North Sky will generate about 40 million Nm³ of biogas a year. That volume could heat roughly 20,000 homes and help Denmark stay on track for a fully renewable gas grid by 2030.

For Sumitomo, it is a landmark move into European biogas after years of investment in solar, wind, and hydrogen. The company views biogas as a missing link in the shift to a circular energy model. Skovgaard, meanwhile, brings deep experience working with farmers and running biogas facilities across Denmark, giving the venture both technical roots and community ties.

Analysts say the project could offer a useful template for cross border energy deals. One spokesperson for the European Biogas Association called it a sign that local innovation can scale into global climate solutions.

The effort aligns with the European Union’s ReFuelEU Aviation goals, which push airlines toward cleaner fuels. Challenges remain, from the steep cost of hydrogen to evolving rules for synthetic fuel production. Even so, the new alliance points to growing momentum behind integrated renewable systems.

In joining forces, Sumitomo and Skovgaard suggest that the path to cleaner skies may run through unconventional sources. It is a reminder that climate progress often hinges on partnerships that unite ambitious capital with grounded expertise.