ZeroAvia has extended its Series C financing to a total of $150 million, with a £20 million ($26m) investment from Scottish National Investment 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 Scottish National Investment 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, says: “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 Scottish National Investment Bank, adds: “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.”