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Clean Aviation plans to distribute up to €60 million in EU funding among three engine manufacturers to develop ground demonstrators for hybrid-electric narrowbody powerplants. This initiative is part of Clean Aviation's fourth call for proposals, set to be released in February 2026, and is included in a total funding of €329.5 million aimed at advancing regional aircraft, hydrogen powertrains, and next-generation narrowbody initiatives.

The overall research effort will total €824 million with private sector contributions. The funding will support five streams, including €130 million for ultra-efficient SMR aircraft and €40 million for ultra-efficient regional aircraft projects.

The hybrid-electric projects are expected to demonstrate a propulsion sub-system integrated into an SMR engine, targeting service entry around 2035. The final topics and funding allocations for call 4 will be confirmed on 12 February 2026.