ZeroAvia Raises $34 Million for Electric Jet Engine

14.09.2024 - 19:16 / skift.com / Justin Dawes

ZeroAvia is the latest to raise money in a group of startups developing next-generation aircraft and parts. The company is building hydrogen-electric jet engine to sell to aircraft manufacturers — with buy-in from American Airlines, Airbus, and Alaska Airlines

Archer Aviation raised $230 million in August as it develops an urban flying taxi. Startups in this area have raised over half a billion dollars in venture capital so far this year.

ZeroAvia was among seven travel startups that announced fundraises this week totaling nearly $90 million.

ZeroAvia, which is developing a hydrogen-electric jet engine, has raised $34 million. It’s an extension of its series C round of $116 million in 2023. 

The latest funding includes $26.2 million (£20 million) from Scottish National Investment Bank and investments from American Airlines, International Airlines Group (IAG), and ITOCHU Corporation.  

The funding will go toward certifying the startup’s first powertrain, as well as selling components to other electric aviation companies. 

Headquartered in the UK and California, ZeroAvia said it is developing hydrogen-electric engines that use hydrogen in fuel cells to generate electricity. That electricity is then used to power motors that turn the aircraft’s propellers, with water being the only byproduct during flight.

The company is focusing first on engines that support a 300-mile range in aircrafts of nine to 19 seats by the end of 2025. The next focus will be on engines that support a range of up to 700 miles in aircrafts with 40-80 seats by 2027. The company has completed nearly 2,000 pre-orders for engines and components from a number of airlines, operators, and manufacturers. 

ZeroAvia has already been testing a prototype of its first engine on a Dornier 228 aircraft in the UK. The company has also been testing key components of the next generation of its engine. 

The company is also looking at establishing a manufacturing facility in the UK. 

Reiwa Travel, which sells travel packages to outbound Japanese travelers, has raised $34.1 million (4.8 billion Japanese yen). 

SMBC Group was the lead investor, with support from existing and new investors. The startup said it has now raised a total of nearly $50 million.

Japan-based Reiwa Travel says its tech aims to create travel packages based on the needs of individual customers. The company has booked ​​45,000 tours in just under two years.

The company plans to expand globally, and add a domestic travel business and tool for making flight reservations. It is also beginning to explore AI-powered tools for travel search, concierge, and dynamic pricing. 

Host & Stay Group, a vacation rental management platform, has raised $13.8 million (£10.5 million) from the firm