Rolls-Royce will lead a European consortium to develop and test a hybrid-electric gas-turbine propulsion system, targeting a minimum 20 percent reduction in aircraft-level carbon dioxide emissions for future short- to medium-range aircraft.

In a press release issued on September 18, 2026, the manufacturers announced its selection to head the ELEVATED project under the European Union’s Clean Aviation Joint Undertaking (CAJU). The initiative will embed a hybrid-electric subsystem into a donor engine for realistic ground testing, which is scheduled for 2028 using the Rolls-Royce UltraFan 30 narrowbody technology demonstrator.

Clean Aviation funding and consortium details

The ELEVATED project is one of 19 initiatives selected during the CAJU Call 4 funding round. The European Union allocated up to €290 million across these projects, generating a total public and private investments of €664 million. The broader Clean Aviation programme operates with a €4.1 billion budget, comprising €1.7 billion in EU funding and €2.4 billion from private sources.

Rolls-Royce Deutschland Ltd & Co KG will lead the ELEVATED consortium. The group includes academic, research, and industry partners distributed across France, Germany, the Netherlands, Norway, Spain, and the United Kingdom.

The overarching goal of the Clean Aviation programme for short- to medium-range and regional aircraft is a 30 percent reduction in emission footprint compared to 2020 state-of-the-art aircraft. The ELEVATED project specifically aims to advance hybrid-electric technology toward Technology Readiness Level 6 (TRL6).

Integration with the UltraFan 30 demonstrator

The project will utilize the UltraFan 30, a technology demonstrator designed by Rolls-Royce for narrowbody applications and engineered for compatibility with 100 percent sustainable aviation fuel (SAF). By integrating hybrid-electric elements into this architecture, the consortium intends to evaluate the performance impacts on thrust, fuel burn, noise, and durability.

Alan Newby, Director – Research & Technology at Rolls-Royce, stated that the project will generate data to validate modeling and inform future technology selection, product development, and certification planning.

“Together with the turbomachinery work being advanced through the ongoing UNIFIED project, it will help bring together the key technology paths needed to validate future UltraFan capability and support best-in-class performance in thrust, fuel burn, noise, emissions and durability,” Newby said in the company statement.

Additional hydrogen research initiatives

Alongside the ELEVATED project, Rolls-Royce confirmed its participation in two other newly announced Clean Aviation projects. The FARMAN project will focus on the development of hydrogen distribution systems for commercial aviation applications.

The company will also participate in the H-ELENA project, which is dedicated to advancing hydrogen engines for low-emission nitrogen oxide (NOx) architectures. Both projects align with the manufacturer’s broader research into alternative propulsion and fuel systems.

AirPro News analysis

The selection of Rolls-Royce to lead the ELEVATED project underscores the European aerospace sector’s reliance on established engine manufacturers to drive the transition toward hybrid-electric architectures. By anchoring the hybrid-electric subsystem testing to the UltraFan 30 demonstrator, we see a clear strategy to mature multiple technologies simultaneously. The 2028 ground testing target is ambitious but necessary if these propulsion systems are to reach TRL6 in time to influence the next generation of narrowbody aircraft designs expected in the 2030s.

Sources: Rolls-Royce

Surf Air Mobility Inc. (NYSE: SRFM) has secured its first external commercial contract for OperatorOS, signing a definitive agreement with Sprintbach Aviation to deploy the flight operations software. Announced in a press release on September 17, 2026, the deal establishes a new revenue stream for Surf Air Mobility, which will earn a percentage of revenue from all Sprintbach flights managed through the platform.

The agreement marks the official commercial launch of OperatorOS, a system designed specifically for Part 135 operators and powered by data integration architecture from Palantir Technologies (NASDAQ: PLTR).

Transitioning from internal tool to commercial product

Surf Air Mobility initially developed OperatorOS for its own airline subsidiaries, utilizing the software internally since 2025 to manage operations for Southern Airways and Mokulele Airlines. The commercial rollout follows a regulatory milestone achieved on August 26, 2026, when the Federal Aviation Administration (FAA) approved OperatorOS as an authorized system of record for electronic signatures and recordkeeping.

Surf Air Mobility Co-founder Liam Fayed stated that the Software has already proven its efficiency within the company’s own airline operations. Fayed noted that the Sprintbach agreement represents the first step in a broader commercial strategy, with the company targeting a total of five operators live on the platform by the end of 2026.

Sprintbach Aviation deployment and operational scope

Sprintbach Aviation currently operates a fleet of nine aircraft and employs 16 pilots. The operator already conducts flights for Surf On Demand, providing Sprintbach management with prior exposure to the OperatorOS environment in an active airline setting.

Sprintbach Aviation President Mark Hankinson highlighted the operational challenges of managing Part 135 flights, which require coordinating aircraft, crews, duty limits, maintenance, and customer data across multiple disconnected systems.

“Having OperatorOS powered by Palantir matters to us because it means our operational data is actually connected and working for us, not sitting in separate spreadsheets,” Hankinson said in the press release.

AirPro News analysis

We view this Contracts as a notable diversification of Surf Air Mobility’s business model. By commercializing OperatorOS, the company is leveraging its internal software investments to enter the aviation business-to-business software market. The revenue-sharing structure of the Sprintbach agreement is particularly interesting. Tying software costs directly to flight revenue lowers the upfront capital barrier for smaller Part 135 operators, which often rely on fragmented legacy systems or manual spreadsheets. If Surf Air Mobility can successfully onboard its target of five operators by the end of 2026, OperatorOS could become a meaningful, high-margin revenue stream distinct from the capital-intensive nature of its physical airline operations and advanced air mobility projects.

Sources: Surf Air Mobility Inc. via Business Wire

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.