The Bank has invested £20m in ZeroAvia, developer and manufacturer of zero-emission engines for commercial aviation.
The funding completes the company’s Series C financing and will bolster the burgeoning aerospace supply chain in Scotland as the company looks to create a manufacturing facility here.
ZeroAvia is developing the world’s first zero-emission, hydrogen-electric engines for commercial aircraft. Highlands and Islands routes are potentially some of the earliest flights to utilise zero-emission flight technology, and this latest financing is a critical step in the company’s overall production plans to bring its clean aviation engine technology to market.
ZeroAvia has already submitted its 600kW hydrogen-electric engine - ZA600 - for certification with regulators and is working actively towards testing the final design. Simultaneously, the company is developing the building block technologies to support its second engine class - ZA2000 – designed for 40-80 seat regional aircraft. The company is also selling its component technology, including electric motors and fuel cell power generation systems, to other electric aviation innovators.
ZeroAvia was founded in California before developing a substantial presence in the UK. It has a longstanding partnership with Glasgow and Aberdeen airports (AGS Airports) and signed an agreement earlier this year with ScottishPower to develop low-carbon hydrogen supply for key airport locations. The company is actively exploring potential sites in Scotland.
Val Miftakhov, Founder and CEO, ZeroAvia said: “We have closed an exceptionally strong financing round to help us deliver the clean future of flight for the entirety of aviation. As a purpose-driven impact investor, the Bank is an ideal partner for ZeroAvia. Scotland’s ambitious net zero targets, its strategic focus on hydrogen and its strong existing aerospace skills base make it an attractive place for ZeroAvia’s UK production operations as we scale into a major aerospace manufacturer.”
This is the Bank’s first investment in hydrogen-based technology and the sustainable aviation sector. The Bank takes a long-term view of investment, providing patient capital to projects that support the development of a fairer and more sustainable economy.
Robin Tayal, Investment Director at the Bank said: “Decarbonising aviation is one of the key environmental challenges we face and it is fundamental to the net zero transition. We are pleased to address it by investing in ZeroAvia, enabling critical research and manufacturing.
“ZeroAvia has a robust long-term plan for the growth of its technology, which will bring tremendous benefits to the wider supply chain and manufacturing sector.”
The Bank will join investors including American Airlines, International Airlines Group (IAG) and ITOCHU Corporation. ITOCHU recently signed an agreement to act as ZeroAvia’s sales representative in Japan. ZeroAvia’s Series C was co-led by Airbus, Barclays Sustainable Impact Capital and NEOM Investment Fund, with UK Infrastructure Bank joining as a cornerstone-level investor.
The Bank is a purpose-driven impact investor that makes its investment decisions in line with three key missions. The investment in ZeroAvia aligns to its net zero mission, which aims to address the climate crisis through growing a fair and sustainable economy.