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.
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 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 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. 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.”
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.”
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.
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.
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.
What is Clean Aviation? What are the main goals of the €945 million funding? Who are the main participants in these projects? When will we see the first results of these initiatives? What is the significance of hydrogen in Clean Aviation?
Clean Aviation’s €945 Million Investment: Transforming European Aviation Through 12 Groundbreaking Sustainability Projects
The Clean Aviation Joint Undertaking: Foundation for Europe’s Sustainable Aviation Future
The €945 Million Third Call Results: Unprecedented Investment in Aviation Innovation
Key Selected Projects and Technologies: Revolutionary Approaches to Sustainable Flight
Strategic Focus Areas and Innovation Priorities: Targeting High-Impact Technology Development
Industry Impact and Market Implications: Transforming European Aerospace Competitiveness
Timeline and Implementation Strategy: Coordinated Path to Commercial Deployment
Conclusion: Charting Europe’s Path to Sustainable Aviation Leadership
FAQ
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.
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.
Major aerospace manufacturers (such as ATR, Honeywell, Rolls-Royce), research institutions, universities, and SMEs across Europe are collaborating on the selected projects.
Demonstrator aircraft are expected to fly by 2030, with commercial entry into service targeted for the mid-2030s.
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
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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