The Scottish National Investment Bank (SNIB) has backed a firm working towards the manufacture of zero-emission engines for commercial aviation in Scotland.
The state-backed development bank has invested £20 million in ZeroAvia, which is understood to be developing the world’s first zero-emission hydrogen-electric engines for commercial aircraft.
It noted that routes across the Highlands and Islands could potentially be some of the earliest to utilise zero-emission flight technology, declaring that the latest financing was a “critical step” in the company’s overall plan to bring clean aviation engine technology to market.
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And the institution said it was its first investment in hydrogen-based technology and the sustainable aviation sector.
Val Miftakhov, founder and chief executive of 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.
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“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.”
ZeroAvia has submitted its 600kW hydrogen-electric engine - ZA600 - for certification with regulators and is working towards testing the final design.
It is simultaneously 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 presence in the UK. It has a long-standing partnership with Glasgow and Aberdeen airports and signed an agreement earlier this year with ScottishPower to develop low-carbon hydrogen supply for key airport locations. The company is exploring potential sites in Scotland.
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The SNIB was established to provide development capital to Scottish firms engaged in the bank’s three core missions: the drive to net zero, tackling place-based inequality, and supporting innovation. It was set up with a war-chest of £2 billion to be deployed over a 10-year period.
Last month, the bank released its latest accounts which revealed that it made a loss of nearly £15m in its most recent financial year, after writing off its £8m investment in the company set up to operate Scotland’s failed deposit return scheme.
However, investment income generated by the state-funded development bank exceeded its operating costs for the first time, the accounts showed.
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