Sustainable Aviation
Airbus Delays ZEROe Hydrogen Aircraft: A Setback for Aviation
The aviation industry has long been under pressure to reduce its carbon footprint, and Airbus’s ZEROe hydrogen-powered aircraft project was seen as a beacon of hope. Launched in 2020, the initiative aimed to revolutionize air travel by introducing the world’s first hydrogen-powered commercial aircraft by 2035. However, recent developments have revealed significant delays and budget cuts, raising questions about the feasibility of hydrogen as a near-term solution for sustainable aviation.
Hydrogen has been touted as a transformative energy source for aviation due to its potential to produce zero emissions when used in fuel cells or combustion engines. Airbus’s ZEROe program was designed to explore this potential, with three distinct aircraft concepts, including a blended-wing body (BWB) design. The project also included plans to test hydrogen propulsion systems on a modified A380 test aircraft. Despite the initial optimism, Airbus has now pushed back its 2035 target, citing slower-than-anticipated technological advancements and the lack of a comprehensive hydrogen ecosystem.
The delay is a significant blow to Airbus’s ambitions to lead the aviation industry’s transition to zero-emission technologies. It also highlights the broader challenges of adopting hydrogen as a viable energy source for aviation, including infrastructure development, regulatory frameworks, and global collaboration. As the industry increasingly focuses on Sustainable Aviation Fuel (SAF) as a more immediate solution, the future of hydrogen-powered aircraft remains uncertain.
One of the primary reasons for the delay in the ZEROe project is the slower-than-expected development of key technologies. Hydrogen production from renewable energy sources, a critical component of the project, has not progressed as quickly as anticipated. Additionally, the maturity of certain aircraft technologies, such as hydrogen fuel cells and storage systems, has fallen short of expectations. These challenges have forced Airbus to reassess its timeline and allocate resources more strategically.
Another significant hurdle is the lack of a comprehensive hydrogen ecosystem. For hydrogen-powered aircraft to become a reality, a global infrastructure for hydrogen production, distribution, and storage must be developed. This includes not only the production of green hydrogen but also the establishment of hydrogen refueling stations at airports worldwide. Airbus has acknowledged that building this ecosystem requires substantial investment and collaboration across industries, which has proven to be a complex and time-consuming process.
The cancellation of the A380 flight testing program further underscores the technological challenges faced by the ZEROe project. The modified A380 was intended to serve as a testbed for hydrogen propulsion systems, but the decision to scrap this initiative reflects the difficulties in integrating hydrogen technology into existing aircraft designs. This setback has led to a 25% reduction in the budget for hydrogen research, signaling a shift in priorities for Airbus.
“Hydrogen has the potential to be a transformative energy source for aviation. However, we recognize that developing a hydrogen ecosystem – including infrastructure, production, distribution, and regulatory frameworks – is a huge challenge requiring global collaboration and investment.” – Airbus Statement
In light of the delays in the ZEROe project, Airbus is increasingly focusing on Sustainable Aviation Fuel (SAF) as a more immediate solution for reducing emissions. SAF, which is derived from renewable sources such as waste oils and agricultural residues, can be used in existing aircraft engines with minimal modifications. This makes it a more practical and scalable option for the aviation industry in the short to medium term.
However, SAF is not without its challenges. The limited availability and higher costs of SAF compared to conventional jet fuel present ongoing obstacles to its widespread adoption. Despite these issues, SAF is seen as a critical component of the aviation industry’s efforts to achieve net-zero emissions by 2050. Airbus has emphasized that SAF will play a key role in its sustainability strategy, particularly for medium- and long-range flights where hydrogen-powered aircraft are not yet viable. The shift towards SAF also reflects a broader trend in the aviation industry. Many airlines and manufacturers are investing in SAF production and infrastructure to reduce their carbon footprint. While hydrogen remains a promising long-term solution, the immediate focus on SAF highlights the need for practical and scalable alternatives to conventional jet fuel.
The delay in Airbus’s ZEROe hydrogen aircraft project is a significant setback for the aviation industry’s efforts to transition to zero-emission technologies. While hydrogen has the potential to revolutionize air travel, the challenges of developing the necessary technologies and infrastructure have proven to be more complex than anticipated. The cancellation of the A380 flight testing program and the reduction in the hydrogen research budget underscore the difficulties of integrating hydrogen technology into existing aircraft designs.
Despite these challenges, Airbus remains committed to exploring hydrogen as a long-term solution for sustainable aviation. In the meantime, the company is shifting its focus towards Sustainable Aviation Fuel (SAF) as a more immediate and practical alternative. The future of hydrogen-powered aircraft remains uncertain, but the lessons learned from the ZEROe project will undoubtedly inform future efforts to develop sustainable aviation technologies.
Question: Why has Airbus delayed the ZEROe hydrogen aircraft project? Question: What is Sustainable Aviation Fuel (SAF), and why is Airbus focusing on it? Question: What are the main challenges of using hydrogen as an energy source for aviation? Sources: Aerospace Testing International, FlightGlobal, Airbus
Airbus Delays ZEROe Hydrogen Aircraft: A Setback for Sustainable Aviation
Technological and Infrastructure Challenges
Shift Towards Sustainable Aviation Fuel (SAF)
Conclusion
FAQ
Answer: Airbus has delayed the project due to slower-than-expected technological advancements and the lack of a comprehensive hydrogen ecosystem, including infrastructure, production, and regulatory frameworks.
Answer: SAF is derived from renewable sources and can be used in existing aircraft engines with minimal modifications. Airbus is focusing on SAF as a more immediate and practical solution for reducing emissions in the short to medium term.
Answer: The main challenges include the development of hydrogen production from renewable energy sources, the maturity of hydrogen fuel cell and storage technologies, and the establishment of a global hydrogen infrastructure.
Sustainable Aviation
SkyNRG Closes Financing for Europe’s First Standalone SAF Plant
SkyNRG reaches financial close for DSL-01, Europe’s first standalone SAF plant in the Netherlands, targeting full operations by mid-2028.
This article is based on an official press release from SkyNRG and accompanying project documentation.
SkyNRG has officially reached financial close for DSL-01, its first dedicated commercial-scale Sustainable Aviation Fuel (SAF) production facility. Located in Delfzijl, Netherlands, the project marks a significant milestone in the European aviation sector’s transition to renewable energy. According to the company’s announcement, construction on the facility has already commenced, with full operations targeted for mid-2028.
The DSL-01 project is distinguished as Europe’s first standalone greenfield SAF plant, meaning it is being built from the ground up rather than as an expansion of an existing fossil fuel refinery. Once operational, the facility is projected to produce 100,000 tonnes of SAF annually, alongside 35,000 tonnes of by-products including bio-propane and naphtha.
Maarten van Dijk, CEO and Co-Founder of SkyNRG, emphasized the strategic importance of this development in a statement regarding the launch:
“Reaching this important milestone… marks an important step in our transition to becoming an owner and operator of SAF production capacity. This milestone demonstrates growing market confidence in scalable SAF production and provides a model for future sustainable fuel projects globally.” The facility will utilize Topsoe’s HydroFlex™ technology, operating on the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. SkyNRG has stated that the plant will process waste oils and fats,predominantly sourced from regional industries,and will explicitly exclude virgin vegetable oils such as palm or soy to avoid competition with food supplies. The project aims to deliver a lifecycle CO2 emissions reduction of more than 85% compared to fossil jet fuel.
Technip Energies has been awarded the Engineering, Procurement, and Construction (EPC) contract for the site. While specific contract values are often confidential, industry reports estimate the value between €500 million and €1 billion. The construction phase is expected to generate hundreds of jobs in the Groningen Seaports region, contributing to the area’s developing green industrial cluster.
A critical aspect of the DSL-01 project is its financial structure. It is the first commercial-scale SAF plant to secure non-recourse project financing, a move that signals increasing maturity in the SAF market. Under this structure, lenders are repaid based on the project’s future cash flow rather than the general assets of the parent company.
The investment consortium includes: Arjan Reinders, Head of Infrastructure Europe at APG, noted the alignment of this investment with broader sustainability goals:
“SkyNRG represents the first investment in the SAF sector on behalf of our client [ABP], which is closely aligned with our ambition to create impact by investing at the forefront in energy transition assets.” To ensure the commercial viability of the plant, SkyNRG has secured long-term offtake agreements. KLM Royal Dutch Airlines has committed to purchasing 75,000 tonnes of SAF annually for a period of 10 years. This volume represents three-quarters of the plant’s total SAF output and is essential for KLM to meet upcoming EU mandates under the ReFuelEU Aviation Regulation.
Additionally, SHV Energy has agreed to purchase the bioLPG (bio-propane) by-products produced by the facility. Shell, a strategic partner of SkyNRG since 2019, retains an option to purchase SAF from the plant and continues to provide technical and commercial expertise.
The successful financial close of DSL-01 represents a pivotal moment for the SAF industry, specifically regarding “bankability.” Historically, SAF projects have struggled to attract traditional project finance due to perceived technology and market risks. The willingness of a major banking syndicate to provide non-recourse debt suggests that financial institutions now view HEFA-based SAF production as a stable asset class.
Furthermore, the timing of this project aligns directly with the European Union’s “Fit for 55” regulatory package. With the ReFuelEU Aviation Regulation mandating a 2% SAF blend by 2025 and rising to 6% by 2030, the DSL-01 facility will come online just as demand pressures intensify. Unlike competitors expanding existing refineries, SkyNRG’s success with a standalone greenfield site provides a “proof of concept” that could accelerate the development of similar independent facilities globally, such as their planned projects in the United States and Sweden.
Sources:
SkyNRG Reaches Financial Close on Europe’s First Standalone Greenfield SAF Plant
Project Specifications and Technology
Financial Structure and Investment Partners
Strategic Partnerships and Offtake Agreements
AirPro News Analysis
Photo Credit: SkyNRG
Sustainable Aviation
Asia-Pacific Aviation Growth and Sustainable Aviation Fuel Initiatives 2026
Asia-Pacific aviation growth faces decarbonization challenges with new SAF mandates and Airbus’s just transition strategy at Singapore Airshow 2026.
This article is based on an official press release from Airbus and additional industry reporting regarding the Singapore Airshow 2026.
As the aviation industry gathers for the Singapore Airshow 2026, the Asia-Pacific (APAC) region stands as the focal point of global aerospace growth. According to recent industry forecasts, APAC is projected to account for over 50% of global aviation growth between 2025 and 2026. However, this rapid expansion presents a critical challenge: reconciling a forecast 7.3% increase in passenger traffic with urgent decarbonization goals.
In a press release issued on February 2, 2026, Airbus outlined a strategy focused on a “just transition.” The European manufacturer argues that the adoption of Sustainable Aviation Fuel (SAF) in Asia-Pacific offers more than just environmental compliance; it presents a pathway for regional socioeconomic development and energy sovereignty.
While the primary driver for SAF adoption globally has been carbon reduction, Airbus emphasizes that for the APAC region, the benefits are deeply tied to local economic resilience. The region possesses abundant feedstock potential, including agricultural residues, used cooking oil, and palm oil waste.
According to the Airbus announcement, utilizing agricultural waste for fuel production addresses multiple local issues simultaneously. In many parts of Asia, the burning of agricultural fields contributes significantly to seasonal air pollution. By converting this biomass into SAF, the region can reduce local smog while creating new revenue streams for rural communities.
Airbus describes this approach as a “just transition,” ensuring that the shift to green energy supports developing economies rather than hindering them. The manufacturer notes that developing local production capabilities also boosts “regional energy sovereignty,” reducing the reliance on imported fossil fuels.
“Given the broad socioeconomic diversity… Asia-Pacific is a prime place to demonstrate the possibilities for a just transition. Leveraging co-benefits could open opportunities to build community resilience.”
, Airbus Press Release, February 2, 2026
Beyond manufacturer initiatives, government policy in the region is hardening. Data released in conjunction with the Singapore Airshow highlights a wave of new mandates and targets aimed at accelerating SAF uptake. Most notably, Singapore has confirmed the introduction of a SAF levy for all flights departing from Changi Airport starting October 1, 2026. This levy is designed to fund a national 1% SAF target by the end of the year, with plans to scale to 3-5% by 2030.
Other regional developments include:
The push for decarbonization is also visible on the tarmac. During the Singapore Airshow, an Airbus A350-1000 is performing flying displays powered by a 35% SAF blend. The fuel, supplied by Shell Aviation, was produced via the HEFA-SPK pathway using used cooking oil and tallow.
In a significant move for propulsion technology, Airbus, CFM International, and the Civil Aviation Authority of Singapore (CAAS) signed a Memorandum of Understanding (MOU) on February 2. This agreement establishes Singapore as the world’s first airport testbed for the “RISE” (Revolutionary Innovation for Sustainable Engines) program. The initiative aims to test “Open Fan” engine architecture, which targets a 20% improvement in fuel efficiency.
Additionally, Airbus and Cathay Group have reiterated their commitment to a US$70 million joint investment, originally announced in late 2025, to accelerate SAF production projects with commercial viability in the region.
While the regulatory and technological momentum is palpable, a stark reality remains. Industry data indicates that global SAF output reached only 1.9 million tonnes in 2025, representing a mere 0.6% of total jet fuel demand. With APAC passenger traffic expected to grow by 7.3% in 2026, the gap between demand for travel and the supply of green fuel is widening.
The “green premium”, where SAF costs 2x to 4x more than conventional jet fuel, remains the primary hurdle. While the “just transition” narrative provided by Airbus offers a compelling long-term vision for feedstock utilization, the immediate success of these initiatives will depend heavily on whether the new levies and investments can bridge the price gap quickly enough to meet the 2027-2030 mandates.
What is the “Just Transition” in aviation? When does the Singapore SAF levy begin? What is the current global supply of SAF? Sources:
Asia-Pacific Aviation at a Crossroads: Balancing Growth with a “Just Transition”
The Socioeconomic Case for SAF
Turning Waste into Wealth
Regulatory Momentum and National Mandates
Technological Milestones at Singapore Airshow 2026
New Partnerships
AirPro News Analysis
Frequently Asked Questions
In this context, it refers to decarbonizing aviation in a way that provides economic benefits to developing nations, such as creating jobs in rural areas by using agricultural waste for fuel production.
The levy applies to all flights departing Singapore starting October 1, 2026.
As of 2025, SAF production accounted for approximately 0.6% of total global jet fuel usage.
Airbus,
IATA,
Civil Aviation Authority of Singapore
Photo Credit: Airbus
Sustainable Aviation
FedEx Expands Sustainable Aviation Fuel Program to DFW and JFK Airports
FedEx expands sustainable aviation fuel use to Dallas-Fort Worth and JFK airports, supporting its carbon-neutral goals with 5 million gallons secured for 2025.
This article is based on an official press release from FedEx.
FedEx has officially expanded its SAF program to include Dallas-Fort Worth International Airport (DFW) and John F. Kennedy International Airport (JFK). The logistics giant announced the move on January 29, 2026, marking a significant step in its “Priority Earth” sustainability roadmap. With these additions, FedEx now utilizes SAF at five airports across the United States.
According to the company’s announcement, the expansion is supported by World Fuel Services (WFS), which manages the supply chain and delivery of the fuel. The initiative positions FedEx as the first airline, cargo or passenger, to purchase SAF for regular commercial operations at DFW, a major global logistics hub.
The agreement covers the purchase of approximately 2 million gallons of “neat” (unblended) SAF for these two locations. When combined with agreements for other hubs, FedEx has secured a total of 5 million gallons of neat SAF for delivery throughout 2025.
While the purchasing agreements are calculated in gallons of “neat” SAF, the fuel actually delivered to aircraft is a blend. Safety regulations currently prohibit the use of 100% SAF in commercial aircraft engines. Consequently, the fuel supplied to FedEx at DFW and JFK is a mixture containing a minimum of 30% neat SAF blended with conventional Jet A fuel.
World Fuel Services facilitates this supply, typically sourcing the renewable component from Valero’s Diamond Green Diesel (DGD) joint venture. The SAF is produced via the HEFA (Hydroprocessed Esters and Fatty Acids) pathway, utilizing waste-based feedstocks such as used cooking oil, animal tallow, and distiller’s corn oil. This production method allows for a lifecycle greenhouse gas (GHG) emissions reduction of up to 80% compared to standard petroleum-based jet fuel.
In a statement regarding the logistical achievement, Bradley Hurwitz, Senior Vice President of Supply & Trading at World Fuel Services, noted:
“FedEx’s purchase at DFW and JFK demonstrates how our aviation fuel distribution platform enables carriers to access lower-carbon fuel options with a robust supply chain designed for flexibility and scale.”
This expansion is part of FedEx’s broader strategy to achieve carbon-neutral global operations by 2040. The company has set an interim target to source 30% of its total jet fuel from alternative fuels by 2030. The addition of DFW and JFK complements existing SAF programs at Los Angeles International Airport (LAX), Chicago O’Hare (ORD), and Miami International Airport (MIA). Karen Blanks Ellis, Chief Sustainability Officer at FedEx, emphasized the progress made over the last year:
“Expanding SAF use by FedEx to include our operations at DFW and JFK caps off a successful year of SAF deployments coast-to-coast. While we know there remains work ahead to procure more SAF… we are proud of our steps forward.”
The introduction of SAF at Dallas-Fort Worth is particularly notable. While pilot programs have existed at DFW since 2021, they were largely limited to business aviation. FedEx’s commitment marks the first regular commercial adoption at the airport, signaling a shift from experimental to operational use in the cargo sector.
However, the industry faces significant headwinds. SAF currently trades at a premium of two to five times the price of conventional jet fuel. Furthermore, global production remains less than 1% of total jet fuel demand. While the “book and claim” system and government incentives like the U.S. Inflation Reduction Act help bridge the cost gap, the physical availability of SAF remains the primary bottleneck for large-scale adoption.
By securing 5 million gallons of neat SAF for 2025, FedEx is signaling consistent demand to producers, which is essential for stimulating the investment required to increase production capacity.
Airport officials have welcomed the move as a validation of existing infrastructure capabilities. Because the blended fuel is a “drop-in” solution, it requires no modifications to airport storage tanks or hydration systems.
Robert Horton, Vice President of Environmental Affairs at DFW Airport, stated:
“FedEx’s SAF purchase reflects how airlines, airports, and fuel providers work together within existing airport infrastructure to support the development of more sustainable aviation operations.”
“Neat” SAF refers to the pure, unblended sustainable fuel. It is not used in aircraft in this form due to safety regulations. Instead, it is blended with conventional jet fuel before delivery. Purchasing agreements often cite “neat” volumes to track the exact amount of renewable content purchased.
As of early 2026, FedEx utilizes SAF at five U.S. airports: Dallas-Fort Worth (DFW), John F. Kennedy (JFK), Los Angeles (LAX), Chicago O’Hare (ORD), and Miami (MIA). The specific SAF used in this agreement, produced via the HEFA pathway, can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel.
FedEx Expands Sustainable Aviation Fuel Program to DFW and JFK Airports
Operational Details and Supply Chain
Strategic Context: The “Priority Earth” Goal
AirPro News Analysis
Stakeholder Commentary
Frequently Asked Questions
What is “Neat” SAF?
Where does FedEx use SAF?
What is the emission benefit?
Sources
Photo Credit: FedEx
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