Scottish National Investment Bank invests in ZeroAvia's Series C round

The Scottish National Investment Bank has contributed GBP 20 million (USD 26.2m/EUR 23.7m) to ZeroAvia’s Series C financing round, making its first investment in hydrogen-based technology and sustainable aviation.

The Bank’s pledge enabled the British-American hydrogen-electric aviation solutions developer to increase its Series C funding to USD 150 million (EUR 135.3m).

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ZeroAvia recently picked up investments from American Airlines, International Airlines Group (IAG) and ITOCHU Corporation. Previous investors in the Series C round included Airbus, Barclays Sustainable Impact Capital, and NEOM Investment Fund (NIF), with the UK Infrastructure Bank (UKIB) joining as a cornerstone-level investor. They joined existing shareholders including Breakthrough Energy Ventures, Horizons Ventures, Alaska Airlines, Ecosystem Integrity Fund, Summa Equity, AP Ventures and Amazon Climate Pledge Fund.

The Bank’s funds will be used to bolster the aerospace supply chain in Scotland and support the creation of a ZeroAvia manufacturing facility, the startup said.

“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,” commented Val Miftakhov, Founder and CEO of ZeroAvia.

“We are particularly encouraged by the potential of [ZeroAvia’s] technology to provide sustainable connectivity in the Highlands and Islands,” added Robin Tayal, Investment Director at the Bank.

ZeroAvia said that it has already conducted flight tests with its ZA600 engine prototype and is working on certification with the UK’s Civil Aviation Authority. The firm is also developing the ZA2000 system for larger regional aircraft and selling its electric motors and fuel cell power generation systems to other companies in the electric aviation sector.

(GBP 1.0 = USD 1.312/EUR 1.183)

(USD 1.0 = EUR 0.902)