Sustainable Aviation
Elfly’s $50M Electric Seaplane Deal with Cambodia’s VET Airways
Norway’s Elfly Group signs $50M MoU for amphibious electric aircraft, advancing sustainable air transport in Southeast Asia with 50% lower operating costs.
In a significant move toward sustainable regional aviation, Elfly Group, a Norwegian electric aircraft developer, has signed a memorandum of understanding (MoU) with Cambodia’s VET Airways for the sale of five NOEMI electric seaplanes. Valued at US$50 million, the agreement represents a pivotal step in the electrification of air transport in Southeast Asia. The NOEMI aircraft, designed for amphibious operations, can take off and land on both water and conventional runways, making it especially suitable for island nations and regions with limited aviation infrastructure.
This deal expands Elfly’s total number of soft orders to 52 aircraft, with a combined estimated value of US$550 million. The company has also reported expressions of interest from multiple countries, including Denmark, Greece, Indonesia, and Panama, representing a potential additional value of up to US$3 billion. The agreement underscores the growing global appetite for sustainable aviation solutions and highlights the practical utility of amphibious electric aircraft in regions with complex geography.
With the first flight of a full-scale NOEMI prototype scheduled for 2027 and entry into service targeted for 2030, Elfly is positioning itself at the forefront of a transformative shift in regional air mobility. The partnership with VET Airways not only validates Elfly’s technological progress but also sets the stage for broader adoption of zero-emission aviation in emerging markets.
The NOEMI (No Emissions Electric Seaplane) is a nine-seat, all-electric amphibious aircraft designed to operate in diverse environments. Its dual capability to land on both water and traditional runways makes it highly adaptable for use in coastal and island regions. The aircraft is powered by lithium-ion batteries and features two electric motors, delivering a cruising speed of approximately 100 knots and a range of up to 200 kilometers.
Elfly has emphasized that NOEMI offers a 50% reduction in operating costs compared to traditional aircraft, primarily due to its simplified electric propulsion system and lower maintenance requirements. The aircraft also boasts a 20-decibel reduction in noise levels, making it suitable for operations in noise-sensitive areas such as tourist destinations and nature reserves.
Importantly, NOEMI is designed with modularity in mind. The aircraft can be configured for passenger transport, cargo, medical evacuation, or executive travel. This flexibility enhances its appeal across a wide range of applications, from commercial aviation to emergency services.
“NOEMI isn’t just a seaplane. It’s a platform for the next 100 years of flight,” — Eric Lithun, CEO of Elfly Group.
Elfly Group plans to conduct the first flight of a full-scale NOEMI prototype in 2027, with commercial certification anticipated by 2030. The company has already signed a Pre-Application Contract with the European Union Aviation Safety Agency (EASA), outlining a clear pathway toward certification. This step is crucial for ensuring that NOEMI meets the stringent safety and performance standards required for commercial aviation in Europe and beyond.
To date, Elfly has successfully tested smaller-scale prototypes and conducted wind tunnel tests to validate the aircraft’s aerodynamic performance. The company is also addressing technical challenges related to battery placement and corrosion resistance, particularly for operations in saltwater environments. Elfly’s engineering team is working out of Torp Sandefjord Airport in Norway, leveraging the country’s strong renewable energy infrastructure to support the development of sustainable aviation technologies. The company’s phased development approach allows for incremental testing and validation, reducing the risks associated with bringing a new aircraft to market.
Cambodia, with its extensive coastline and numerous islands, presents a compelling use case for amphibious aircraft like NOEMI. The country’s limited aviation infrastructure, only 16 commercial airports, makes traditional air transport less feasible for many regions. By integrating NOEMI into its logistics and passenger transport network, VET Airways aims to overcome these limitations and improve connectivity across the country.
Neak Oknha Suo Vireak, CEO of VET Airways’ parent company Vireak Buntham Express, emphasized the aircraft’s potential to outperform road transport in terms of speed and accessibility. “The amphibious NOEMI can fly straight from airports to the coast and outcompete road transport,” he said, highlighting the aircraft’s role in enhancing logistics efficiency and regional accessibility.
Initially, the aircraft will be deployed along Cambodia’s 1,800-kilometer coastline and to its more than 4,000 islands. These areas are currently underserved by conventional transport modes, making NOEMI a practical solution for both commercial and humanitarian applications.
The deal with VET Airways is part of a broader trend of rising interest in electric and amphibious aircraft. Elfly has already secured soft orders from customers in Denmark, Greece, Indonesia, and Panama. The total value of these orders stands at approximately US$550 million, with additional expressions of interest potentially bringing in another US$3 billion.
This growing demand is reflected in market projections. The global seaplane market, valued at US$610 million in 2023, is expected to reach US$790 million by 2033. Meanwhile, the amphibious aircraft segment is projected to grow from US$164 million in 2021 to US$502 million by 2031, representing a compound annual growth rate (CAGR) of 12.1%.
Elfly’s focus on zero-emission technology aligns with broader industry trends toward sustainability. The “more electric aircraft” market is projected to grow from US$4.7 billion in 2023 to US$11.2 billion by 2033, driven by regulatory pressures and increasing consumer demand for environmentally friendly travel options.
Elfly Group’s agreement with VET Airways marks a significant milestone in the evolution of sustainable regional aviation. By introducing NOEMI to the Cambodian market, the partnership not only expands Elfly’s global footprint but also demonstrates the practical utility of electric seaplanes in overcoming geographic and infrastructural challenges. As the aviation industry continues to grapple with the twin challenges of environmental sustainability and infrastructure limitations, NOEMI offers a compelling solution. With its flexible design, lower operating costs, and zero-emission capabilities, the aircraft is well-positioned to redefine regional air mobility in the years to come.
What is the NOEMI aircraft? Who is VET Airways? When will the NOEMI aircraft be available? What are the environmental benefits of NOEMI? How many NOEMI aircraft have been ordered? Sources:
Elfly Group’s $50 Million Deal with VET Airways: A Leap Forward in Sustainable Aviation
Technological Innovation Behind NOEMI
Design and Capabilities
Development and Certification Timeline
Strategic Importance of the VET Airways Deal
Geographic and Economic Context
Expanding Market Potential
Conclusion
FAQ
NOEMI is a nine-seat, all-electric amphibious aircraft developed by Elfly Group. It can take off and land on both water and conventional runways.
VET Airways is a Cambodian airline operated by Vireak Buntham Express. It focuses on passenger and cargo transport within Cambodia and neighboring regions.
The first full-scale prototype is scheduled to fly in 2027, with commercial certification and entry into service expected by 2030.
The aircraft produces zero emissions, offers lower noise levels, and has 50% lower operating costs compared to traditional aircraft.
As of now, Elfly has received soft orders for 52 aircraft, with additional expressions of interest representing potential sales of up to 300 more units.
AviTrader
Elfly Group
Allied Market Research
EASA
Research and Markets
Photo Credit: Elfly
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
Sustainable Aviation
Washington Launches Cascadia Sustainable Aviation Accelerator for SAF
The Cascadia Sustainable Aviation Accelerator launches with $20M funding to boost Pacific Northwest Sustainable Aviation Fuel production to 1 billion gallons annually by 2035.
This article is based on official press releases from Alaska Airlines and Washington State University, as well as public announcements from the launch event.
On January 8, 2026, a coalition of government, industry, and academic leaders officially launched the Cascadia Sustainable Aviation Accelerator (CSAA). Unveiled at the Boeing Future of Flight in Mukilteo, Washington, the initiative aims to establish the Pacific Northwest as a global leader in the production and deployment of Sustainable Aviation Fuel (SAF).
According to official announcements, the accelerator is backed by $20 million in initial funding. This capital includes $10 million from Washington State’s Climate Commitment Act funds and a matching $10 million contribution from an anonymous philanthropic donor. The coalition has set an ambitious target: to scale regional SAF production to 1 billion gallons annually by 2035.
The initiative represents a broad partnership designed to bridge the gap between policy, technology, and commercial viability. Washington Governor Bob Ferguson championed the launch, positioning it as both an economic engine and a critical climate solution for the state.
The coalition features major stakeholders across multiple sectors:
“We have all the pieces in place to ensure this once-in-a-generation economic opportunity is realized, and this accelerator will make that happen.”
, Governor Bob Ferguson, via official press release
To address the complex barriers facing the SAF market, the initiative is divided into two complementary arms: the Accelerator and the Institute.
The CSAA focuses on market acceleration, financing, and policy advocacy. Its primary mission is to “de-risk” the industry for producers and investors. By harmonizing tax incentives and aggregating fuel demand from airlines and corporate partners, the Accelerator aims to create a stable market environment that encourages rapid scaling of production facilities. The Institute will handle the technical and scientific challenges of SAF adoption. It will operate a new Sustainable Aviation Fuel Research and Development Center based at Paine Field in Snohomish County. While a permanent facility is scheduled for completion by 2029, the center will open in a temporary commercial space in the coming months.
A key feature of the Institute will be the world’s first “SAF Repository.” This facility will function similarly to a seed bank, collecting, indexing, and distributing fuel samples to researchers globally to standardize testing and certification processes.
“For aviation to remain strong and resilient in the decades ahead, sustainability must be part of its future.”
, Elizabeth Cantwell, WSU President, via WSU News
Sustainable Aviation Fuel is widely considered the most viable near-term solution for decarbonizing long-haul aviation. Made from feedstocks such as agricultural waste, used cooking oil, or captured carbon, SAF can reduce lifecycle emissions by up to 80% compared to conventional jet fuel. However, current supply accounts for less than 1% of global jet fuel usage, and it remains significantly more expensive than fossil-based alternatives.
The Pacific Northwest is viewed as an ideal “test bed” for solving these problems due to its access to renewable hydroelectric power, forestry and agricultural residues, and a deep aerospace talent pool.
The Accelerator aims to support existing regional projects, including:
“This is a systems issue that no one company can solve. You’ve got great companies… ready to use this fuel, but we have to make it available.”
, Guy Palumbo, Amazon Director of Public Policy, via launch event remarks
The launch of the Cascadia Sustainable Aviation Accelerator marks a shift from individual corporate sustainability goals to a systemic regional strategy. While the target of 1 billion gallons by 2035 is aggressive, the bifurcation of the initiative into an “Accelerator” (finance/policy) and an “Institute” (R&D) suggests a mature understanding of the bottlenecks. The primary challenge for the CSAA will be feedstock logistics. While the Pacific Northwest has abundant forestry and agricultural waste, the infrastructure to collect, transport, and process these materials at a scale capable of producing 1 billion gallons does not yet exist. Furthermore, the involvement of corporate giants like Amazon and Microsoft is critical; their willingness to pay a “green premium” for sustainable air cargo and travel could provide the demand certainty that producers need to secure financing for new plants.
Success will likely depend on how quickly the Institute can streamline the fuel certification process, which has historically been a slow hurdle for new SAF pathways.
Sources:
Washington Leaders Launch Cascadia Sustainable Aviation Accelerator to Power PNW SAF Hub
A Public-Private Coalition
Strategic Structure: Accelerator and Institute
The Cascadia Sustainable Aviation Accelerator (CSAA)
The Cascadia Sustainable Aviation Institute (CSAI)
Industry Context and Regional Projects
AirPro News Analysis
Photo Credit: Alaska Airlines
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