Sustainable Aviation
EU Invests 945 Million Euros in Sustainable Aviation Projects
The EU Clean Aviation program funds 12 projects with €945 million to cut aviation emissions by 30% by 2035 using hybrid-electric and hydrogen tech.
Clean Aviation’s €945 Million Investment: Transforming European Aviation Through 12 Groundbreaking Sustainability Projects
The European Union’s Clean Aviation Joint Undertaking has announced a transformative €945 million investment across 12 groundbreaking projects, marking a pivotal moment in the aviation industry’s transition toward climate neutrality. This substantial funding commitment, equivalent to $1.1 billion, represents the largest coordinated effort to date in developing disruptive aviation technologies that will fundamentally reshape how Commercial-Aircraft are powered and operated by 2035. The selection encompasses cutting-edge initiatives ranging from hybrid-electric regional aircraft to Hydrogen fuel cell propulsion systems, each designed to achieve the ambitious target of reducing greenhouse gas emissions by at least 30% compared to current state-of-the-art technology.
These projects will directly support the European Green Deal’s objectives while positioning European aerospace Manufacturers at the forefront of the global sustainable aviation revolution, with demonstrator aircraft expected to take flight by 2030 and commercial entry into service targeted for the mid-2030s.
The Clean Aviation Joint Undertaking: Foundation for Europe’s Sustainable Aviation Future
The Clean Aviation Joint Undertaking represents the European Union’s most ambitious research and innovation program dedicated to transforming aviation toward a sustainable and climate-neutral future. Established as a European public-private partnership between the European Commission and the aeronautics industry, the program operates with a comprehensive budget of €4.1 billion, divided into €1.7 billion in EU funding and at least €2.4 billion in private funding. This substantial investment framework demonstrates the unprecedented scale of commitment required to address aviation’s environmental challenges while maintaining Europe’s competitive position in the global aerospace market.
Clean Aviation builds on the legacy of the Clean Sky programmes (2008–2024), representing an evolution focused on disruptive new aircraft technology to pave the way toward the EU’s ambition of climate neutrality by 2050. The program targets net greenhouse gas reductions of no less than 30% compared to 2020 state-of-the-art technology, with demonstrators and commercial readiness aiming for 2030 and 2035, respectively.
The program’s strategic framework aligns with the European Green Deal and European Climate Law, mandating a 55% emissions reduction by 2030 and climate neutrality by 2050. Focused on the regional, short, and short-medium range segments, routes up to 4,000 kilometers, which account for about 55% of global aviation CO₂ emissions, the program maximizes environmental impact while targeting market segments where new technologies can be most effectively demonstrated and deployed.
“The Clean Aviation Joint Undertaking’s approach recognizes that achieving climate-neutral aviation requires comprehensive solutions that extend beyond individual technologies to encompass entire aircraft systems and their integration within the broader air transport ecosystem.”
The €945 Million Third Call Results: Unprecedented Investment in Aviation Innovation
The €945 million funding announcement for 12 projects is the result of Clean Aviation’s third call for proposals, which closed in May 2024 and underwent an expert-led evaluation. This round includes €378 million in direct EU funding, complemented by substantial private sector contributions. The selection process ensured that funded projects met the highest standards for innovation potential, technical feasibility, and environmental impact.
The 12 selected projects span three critical technology areas: hybrid-electric regional aircraft, ultra-efficient short and medium-range aircraft architectures, and hydrogen-powered propulsion systems. This diversity reflects the recognition that a portfolio of solutions, rather than a single technology, is needed to address aviation’s decarbonization challenge.
The competitive selection process fostered Partnerships between major aerospace companies, Startups, research institutions, and universities across Europe. These collaborations leverage diverse expertise, foster knowledge transfer, and amplify the impact of EU funding through private co-investment and in-kind contributions.
Key Selected Projects and Technologies: Revolutionary Approaches to Sustainable Flight
Among the most significant projects, ATR leads two initiatives under the Ultra-Efficient Regional Aircraft thrust. The flagship HERACLES project defines an ultra-efficient regional aircraft concept integrating hybrid-electric propulsion, high-performance batteries, and thermal engines compatible with 100% Sustainable Aviation Fuel. The project aims to fly a hybrid-electric ATR 72-600 testbed by 2030, a crucial demonstration of practical sustainable aviation technologies.
The DEMETRA demonstrator project complements HERACLES by developing a flight-test platform using an ATR 72-600. According to ATR CEO Nathalie Tarnaud Laude, these projects represent “a bold commitment to the future of regional aviation” and demonstrate how sustainability and connectivity can work together.
Honeywell leads the NEWBORN project, which focuses on developing an aerospace-qualified megawatt-class hydrogen fuel cell propulsion system. This €44 million initiative involves 18 partners from 10 countries and targets a CS-23-category light aircraft by 2030 and regional aircraft by 2035. The project has already completed key design reviews, with ground tests of a 300kW fuel cell stack planned for 2025.
Rolls-Royce’s HEAVEN project develops hydrogen and hybrid-electric technologies for future civil aviation, targeting a 20% fuel burn reduction and significant nitrogen oxide emissions cuts. Leonardo, ONERA, and other partners are also advancing specialized enabling technologies, from optimized fuselages to advanced wing integration.
“The diversity of selected projects extends to specialized enabling technologies that support broader aircraft integration efforts, ensuring that European aerospace maintains its technological sovereignty.”
Strategic Focus Areas and Innovation Priorities: Targeting High-Impact Technology Development
Clean Aviation’s strategy centers on three pillars: hybrid-electric regional aircraft, ultra-efficient short and medium-range aircraft, and disruptive hydrogen-powered technologies. The first pillar targets shorter-range, lower-capacity operations, where battery limitations are less constraining, offering the most immediate demonstration opportunities.
The second pillar focuses on ultra-efficient aircraft architectures for routes up to 4,000 kilometers, which represent the majority of passenger miles flown and emissions. Technologies here must be scalable and commercially viable for airlines.
The third pillar, hydrogen propulsion, offers the most transformative long-term solution, with the potential for zero-emission flight but requiring fundamental changes in aircraft design and infrastructure. Fast Track Areas, with €15 million in dedicated funding, support rapid advancement of impactful technologies and encourage participation from SMEs and research centers.
Integration and impact assessment receive dedicated funding to ensure that promising technologies are evaluated within realistic aircraft configurations. Regional aircraft architectures receive €145 million, while short and medium-range aircraft receive €205 million, reflecting both market size and technical challenge.
“The program’s holistic approach prevents the development of isolated solutions that cannot be effectively integrated into practical aircraft designs.”
Industry Impact and Market Implications: Transforming European Aerospace Competitiveness
The €945 million investment is a strategic response to global competition, enabling European aerospace manufacturers to accelerate development and achieve technological readiness for commercial deployment by the mid-2030s. The funding strengthens the entire European aerospace supply chain, fostering collaboration and skills development across the ecosystem.
Market implications include the potential for European companies to establish dominant positions in sustainable aviation before international competitors. Demonstration aircraft and flight testing provide tangible proof of technology readiness, supporting airline and investor confidence.
The regional aircraft market is a key opportunity, with ATR’s hybrid-electric projects potentially establishing European dominance. Honeywell’s hydrogen fuel cell systems could enable European leadership in zero-emission propulsion, while broad collaboration ensures comprehensive solutions and competitive advantages.
SMEs benefit from Clean Aviation’s inclusive approach, gaining access to development resources and opportunities to contribute to major advances.
Timeline and Implementation Strategy: Coordinated Path to Commercial Deployment
Clean Aviation’s implementation strategy aims for technology readiness by 2030 and commercial entry into service by 2035. The current project phase (2023–2024) focuses on advancing technologies to Technology Readiness Level 6, followed by demonstration in flying testbeds from 2026 onward.
ATR’s hybrid-electric regional aircraft is targeted for flight by 2030, while Honeywell’s fuel cell stack will undergo ground and complete powertrain testing by 2025–2026. These demonstrations validate performance and build confidence for commercial aircraft development.
The approach allows time for regulatory engagement and certification, aligning with airline fleet replacement cycles and ensuring technology transfer and scaling for commercial applications. Continued public and private investment will be critical for the transition from demonstration to market.
Conclusion: Charting Europe’s Path to Sustainable Aviation Leadership
Clean Aviation’s €945 million Investments in 12 projects is a defining moment for European aerospace, establishing a foundation for climate-neutral aviation and industrial competitiveness. The program’s strategic pillars address the full spectrum of sustainable aviation challenges and create coordinated pathways for development and commercial deployment.
As these projects progress from development through demonstration to commercial service, they will collectively reshape aviation’s environmental impact and ensure Europe’s continued leadership in one of its most strategically important industries.
FAQ
What is Clean Aviation?
Clean Aviation is a European Union research and innovation program aiming to transform aviation towards sustainability and climate neutrality, with a €4.1 billion budget and a focus on disruptive aircraft technologies.
What are the main goals of the €945 million funding?
The main goals are to fund 12 innovative projects that will reduce aviation greenhouse gas emissions by at least 30%, develop hybrid-electric and hydrogen-powered aircraft, and achieve commercial readiness by the mid-2030s.
Who are the main participants in these projects?
Major aerospace manufacturers (such as ATR, Honeywell, Rolls-Royce), research institutions, universities, and SMEs across Europe are collaborating on the selected projects.
When will we see the first results of these initiatives?
Demonstrator aircraft are expected to fly by 2030, with commercial entry into service targeted for the mid-2030s.
What is the significance of hydrogen in Clean Aviation?
Hydrogen propulsion is seen as a transformative solution for zero-emission flight, though it requires significant innovation in aircraft design and infrastructure.
Sources
Photo Credit: Clean Aviation
Sustainable Aviation
SABA Members Back Infinium eSAF Facility With Long-Term Deals
Google, McKinsey, and others sign binding SAFc agreements to support Infinium Energy’s 100,000 MT/year Texas eSAF project.
Corporate members of the Sustainable Aviation Buyers Alliance (SABA) have signed binding, multi-year agreements to purchase sustainable aviation fuel certificates (SAFc) from Infinium Energy’s planned electro-sustainable aviation fuel (eSAF) facility in Texas. The commitments, announced on September 22, 2026, are designed to provide the financial demand signals necessary for Infinium to reach a final investment decision on the project.
In a press release issued by SABA, the organization confirmed that American Airlines (AA) will serve as the physical offtaker for the fuel, managing logistics and delivery. The corporate buyers purchasing the associated certificates include AVEVA, Bain & Company, Google, and McKinsey & Company. The agreement marks the first time SABA’s procurement model has been utilized to directly drive new production capacity for scalable sustainable aviation fuel.
Project Atlas production and environmental targets
Infinium Energy was selected through a SABA procurement process earlier in 2026 to provide ultra-low carbon eSAF. The fuel is produced using waste carbon dioxide and renewable energy, distinguishing it from traditional biofuel pathways that rely on agricultural or waste feedstocks.
The planned Texas facility, designated Project Atlas, is expected to have an annual sustainable aviation fuel (SAF) production capacity of 100,000 metric tons. According to the alliance, the contracted volumes will support an expected greenhouse gas abatement of 212,000 metric tons of carbon dioxide equivalent (mtCO2e). SABA equates this emissions reduction to approximately 3,500 commercial flights between John F. Kennedy International Airport (JFK) and Los Angeles International Airport (LAX).
“We’re proud to partner with SABA members including AVEVA, Bain & Company, Google, McKinsey, and others, as well as American Airlines to bring Infinium Energy’s next world scale eSAF facility to life. Their commitment reflects a shared conviction that decarbonizing aviation requires real investment in next-generation supply,” said Robert Schuetzle, CEO of Infinium Energy.
Aggregating demand through book-and-claim
The transaction utilizes a book-and-claim model. Corporate buyers purchase the SAFc to claim the environmental benefits against their business travel emissions, while the physical fuel is delivered to partner airlines. This mechanism allows corporations to fund SAF production even when the physical fuel cannot be delivered directly to the airports their employees use.
American Airlines will manage the physical integration of the eSAF into the commercial aviation fuel supply chain. Jill Blickstein, Chief Sustainability Officer at American Airlines, stated that the corporate commitments broaden participation in the SAF market and demonstrate how customers can collaborate with airlines and fuel producers to advance decarbonization.
SABA, a joint initiative of the Environmental Defense Fund (EDF), the Center for Green Market Activation (GMA), and RMI, has aggregated $500 million in SAFc demand from 35 companies to date. Aviation currently accounts for approximately 2 to 3 percent of global greenhouse gas emissions.
“Novel technologies are critical to meeting future demand for sustainable aviation fuel, but they will not be operational in time without investments made today. This procurement demonstrates how aggregated, long-term demand can help take promising eSAF projects from idea to reality,” said Jon Creyts, CEO of RMI.
AirPro News analysis
We view this agreement as a critical structural step for the eSAF market. Power-to-Liquid (PtL) fuels like those planned for Project Atlas face a steep commercialization barrier. They are highly capital-intensive to build and currently produce fuel at a significant cost premium compared to both conventional Jet A and HEFA-based SAF derived from waste fats and oils.
Airlines operate on thin margins and generally cannot absorb the full green premium of eSAF alone. By unbundling the environmental attributes from the physical fuel, the SABA model allows highly capitalized corporate entities like Google and McKinsey & Company to absorb that premium. More importantly, signing binding, multi-year offtake agreements provides the revenue certainty that infrastructure lenders require before financing first-of-a-kind industrial facilities. If Project Atlas reaches a positive final investment decision based on these contracts, it will validate the book-and-claim model as a viable financing mechanism for next-generation aerospace infrastructure.
Sources: Sustainable Aviation Buyers Alliance via PR Newswire
Photo Credit: Sustainable Aviation Buyers Alliance
Sustainable Aviation
EU Exceeds 2025 SAF Mandate at 2.79 Percent Blend Rate
EASA reports EU airports hit 2.79% SAF blend in 2025, surpassing the 2% ReFuelEU mandate with 1.1M tonnes supplied.
The European Union surpassed its initial Sustainable Aviation Fuel (SAF) mandate in 2025, with SAF accounting for 2.79 percent of all jet fuel supplied to EU airports during the first mandatory reporting year.
According to the 2026 ReFuelEU Aviation Annual Technical Report published by the European Union Aviation Safety Agency (EASA) on September 17, 2026, fuel suppliers delivered 1.1 million tonnes of SAF against a total aviation fuel supply of 39.3 million tonnes. The 2.79 percent blend rate comfortably exceeded the 2 percent minimum required by the ReFuelEU regulation for 2025. This uptake resulted in an estimated reduction of 3.77 million tonnes of CO2 equivalent greenhouse gas emissions.
“We are pleased to confirm that the SAF mandate under ReFuelEU Aviation was not only met but exceeded,” EASA Executive Director Florian Guillermet stated in the agency’s press release.
Compliance and distribution across European hubs
The EASA report indicates high compliance rates across the sector. Ninety-three percent of aircraft operators and 90 percent of fuel suppliers fulfilled their reporting obligations in 2025. EASA noted that noncompliance among aircraft operators was primarily limited to small business jet operators, nonscheduled carriers, and third-country operators that failed to respond to competent authorities.
SAF distribution reached 121 Airports across all 27 Member States, representing 79 percent of all Union airports. Uptake was heavily concentrated at major European hubs. Amsterdam Airport Schiphol (AMS) accounted for 29 percent of the tracked SAF supply, followed by Frankfurt Airport (FRA) at 8 percent and Paris Charles de Gaulle Airport (CDG) at 7 percent.
Supply chain dynamics and feedstock dependencies
While the headline blending figures demonstrate regulatory success, the technical report reveals a structural reliance on imported raw materials. Although 86 percent of the SAF supplied at EU airports was refined domestically within the European Union, 85 percent of the underlying feedstocks originated from outside the bloc.
The primary feedstock utilized was Used Cooking Oil (UCO) processed via the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. Of the imported feedstocks, 61 percent originated from China, with additional volumes sourced from Malaysia and Indonesia. On the refining side, Neste’s Rotterdam facility alone produced 33 percent of all European SAF in 2025.
AirPro News analysis
The successful implementation of the 2 percent mandate in 2025 proves that the logistical framework for SAF distribution at major European hubs is functional. However, the heavy reliance on Asian Used Cooking Oil presents a long-term vulnerability for European aviation. As the ReFuelEU mandate scales to 6 percent in 2030, the Regulations will also introduce sub-mandates for synthetic aviation fuels (e-fuels). With approximately 50 synthetic fuel projects awaiting final investment decisions and no large-scale e-fuel facilities currently operational in Europe, we anticipate significant capital mobilization will be required over the next 36 months to prevent future supply bottlenecks and reduce dependency on imported biomass.
Photo Credit: European Union Aviation Safety Agency
Sustainable Aviation
Montana Renewables Cuts SAF Expansion Cost to $137M
Calumet’s Montana Renewables targets 200M gallons of SAF annually by 2028 for $137M, down from a $1.2B plan.
Calumet, Inc. and its subsidiary Montana Renewables, LLC announced a revised expansion plan on September 1, 2026, that will scale SAF production to 200 million gallons annually by 2028 for a fraction of the originally projected cost.
By repurposing existing refining equipment at the Great Falls, Montana facility, the company expects to complete the MaxSAF project with only $137 million in remaining capital. This abandons a previous $1.2 billion megaproject design. The pivot eliminates the need for third-party equity and minimizes debt while accelerating domestic sustainable aviation fuel (SAF) capacity.
Capital efficiency and Department of Energy funding
The original Phase 2 plan contemplated $1.2 billion in capital expenditure. The revised strategy captures 70 percent of the expected benefit for 15 percent of the cost. The financial restructuring involves an amended Loan Guarantee Agreement (LGA) with the U.S. Department of Energy (DOE).
The original LGA was executed in January 2025, with a $782 million first tranche funded in February 2025 to recapitalize Montana Renewables, LLC (MRL). Under the amended agreement, the company will make a final draw of $34 million. This is significantly lower than the original $658 million Phase 2 DOE funding limit.
Calumet CEO Todd Borgmann stated the Office of Energy Dominance Financing (EDF) supported the adjustment to the loan agreement.
“Our amended agreement with the DOE facilitates innovative technology and domestic energy security at a fraction of the original cost. EDF’s willingness to right-size the LGA reflects its ongoing support for Montana’s largest agricultural investment. We look forward to our continued collaboration with the DOE on the success of this project,” Borgmann said.
Borgmann credited the company’s engineering and operational teams for developing a project that maximizes output while drastically reducing the required capital investment.
Production timeline and capacity milestones
The Great Falls facility currently operates at a 60 million gallon SAF run-rate following a spring 2026 constraint removal. A scheduled turnaround in the fourth quarter of 2026 will tie in repurposed equipment from the adjacent Calumet Montana Refining facility.
Following the fourth-quarter integration, the company expects to exceed an 80 million gallon SAF run-rate by December 31, 2026. Production is projected to surpass 120 million gallons by spring 2027 and reach the 200 million gallon target by December 31, 2028.
Total renewable product sales, including renewable diesel and renewable gasoline, are targeted at 17,000 barrels per day by year-end 2028. This represents a 40 percent expansion. The expanded facility will consume 2 billion pounds of ranch- and farm-originated feedstocks annually.
AirPro News analysis
The revised MaxSAF expansion highlights a strategic shift in how producers approach SAF scaling. As noted by Aviation Week on September 2, 2026, the plan allows the largest US producer of SAF to more than triple its production capacity for barely 10 percent of the originally planned investment.
During Calumet’s second-quarter 2026 earnings call on August 7, 2026, the company confirmed that Montana Renewables completed performance testing of the newly installed MaxSAF catalyst, which met or exceeded expectations. By leveraging existing fossil-fuel infrastructure rather than pursuing multi-billion-dollar greenfield projects, producers can bring SAF to market faster and with significantly lower financial risk. This capital-efficient model may set a precedent for other refiners looking to enter or expand in the renewable fuels sector without diluting equity or taking on unsustainable debt.
Sources: Calumet, Inc.
Photo Credit: Montana Renewables
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