ZeroAvia Completes $150m Series C Financing – Scottish National Investment Bank joins financing round alongside American Airlines, IAG and ITOCHU Corporation
ZeroAvia today announced that it has extended its Series C financing to a total of $150m, with a £20m investment from Scottish National Investment Bank (“the Bank”) coming alongside recent investments from American Airlines, International Airlines Group (IAG) and ITOCHU Corporation.
The round was co-led by Airbus, Barclays Sustainable Impact Capital and NEOM Investment Fund (NIF), with UK Infrastructure Bank joining as a cornerstone-level investor, and with strong support from existing shareholders including Breakthrough Energy Ventures, Horizons Ventures, Ecosystem Integrity Fund, Summa Equity, Alaska Airlines, Amazon’s Climate Pledge Fund and AP Ventures.
This is the Bank’s first investment in hydrogen-based technology and the sustainable aviation sector and will bolster the burgeoning aerospace supply chain in Scotland as ZeroAvia looks to create a manufacturing facility in the country.
ZeroAvia has already extensively flight tested a prototype of its first ZA600-engine aboard a Dornier 228 aircraft at its UK base and the application for certification is underway with the CAA. The company has also performed advanced ground tests in the US and UK for the key building block technologies for the ZA2000 system, including cryogenic tanks for LH2 and proprietary high-temperature PEM fuel cell and electric propulsion systems. ZA2000 will support up to 80 seat regional turboprop aircraft such as the ATR72 and the Dash 8 400. The company is also selling its component technology, including electric motors and fuel cell power generation systems, to other electric aviation innovators.
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.”
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. We are particularly encouraged by the potential of its technology to provide sustainable connectivity in the Highlands and Islands.”
About ZeroAvia
ZeroAvia is working to deliver the clean future of flight for the entirety of aviation by enabling electric propulsion. With a primary focus on developing hydrogen-electric (fuel cell-powered) engines, ZeroAvia has submitted its first powertrain for up to 20 seat planes for certification and is working on a larger powertrain for 40–80 seat aircraft. Founded in California and now with thriving teams in Everett, WA and the United Kingdom, ZeroAvia has secured experimental certificates to test its engines in three separate testbed aircraft with the FAA and CAA and passed significant flight test milestones. The company has signed a number of key engineering partnerships with major aircraft OEMs and has nearly 2,000 pre-orders for engines and its component systems from a number of the major global airlines, operators, and OEMs with future revenue potential over $10bn. For more, please visit ZeroAvia.com.
Scottish National Investment Bank
The Scottish National Investment Bank is Scotland’s development bank and exists to provide patient (long-term) debt or equity investments to businesses and projects that support the development of a fairer, more sustainable Scottish economy.
The Bank is a public limited company (plc) which was established in November 2020. It is wholly owned by Scottish Government ministers, on behalf of the people of Scotland, but operates independently from government.
As an impact investor, the Bank is focused on delivering both commercial returns and tangible benefits that align with at least one of its three missions:
- Net zero: Addressing the climate crisis through growing a fair and sustainable economy
- Innovation: Scaling up innovation and technology for a more competitive and productive economy
- Place: Transforming communities to make them places where everyone thrives.
The Scottish Government has committed to capitalising the Bank with £2bn in its first 10 years. Over time, as the Bank’s initial investments are repaid, it will reinvest those funds in more businesses and projects, creating a perpetual investment fund to support the Scottish economy in the long term.
Find out more at: www.thebank.scot
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ZeroAvia Completes $150m Series C Financing – Scottish National Investment Bank joins financing round alongside American Airlines, IAG and ITOCHU Corporation, source
