The Scottish National Investment Bank has joined a Series C financing round in ZeroAvia, extending the total value to $150m.
The bank submitted £20m ($26m) to the funding round, building on previous investments from American Airlines, International Airlines Group (IAG) and ITOCHU Corporation.
H2 View understands this is the Scottish bank’s first investment into hydrogen-based technology and the sustainable aviation sector.
“Decarbonising aviation is one of the key environmental challenges we face, and it is fundamental to the Net Zero transition,” explained Robin Tayal, Investment Director at the Scottish National Investment Bank.
“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.”
The ZeroAvia funding round was co-led by Airbus, Barclays Sustainable Impact Capital and NEOM Investment Fund (NIF), with the UK Infrastructure Bank joining as a cornerstone-level investor.
There was also strong support from existing shareholders, such as Horizon Ventures, Amazon’s Climate Pledge Fund, Alaska Airlines and AP Ventures.
ZeroAvia Found and CEO, Val Miftakhov, claimed the financing round will help the aviation developer deliver the “future of flight.” The company recorded its first hydrogen-powered flight last year, at its UK test base.
Read more:ZeroAvia records first flight powered by hydrogen-electric engine
The CEO added, “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.”
In January (2024), the company signed an agreement with ScottishPower to establish a low-carbon hydrogen supply to key airports via production locations located in Scotland.
Read more:ZeroAvia and ScottishPower set to establish hydrogen supply for key airports
