Hydro-electric aircraft engine developer ZeroAvia has raised a further £9 million to help it build a manufacturing facility in Scotland, creating about 350 jobs.

The company, founded in California before developing a substantial presence in the UK, is expected to begin production of its advanced fuel cell systems in 2028 in the Advanced Manufacturing Innovation District Scotland as part of the biggest transformation in aviation since the advent of the jet age.

Scottish Enterprise is providing additional funding to the company which last year received £20m from the Scottish National Investment Bank for its Hydrogen Centre of Excellence that will be based in Renfrewshire.

The UK Government’s National Wealth Fund has invested £32m in ZeroAvia and the firm has also been awarded £18.5m in UK Government R&D funding since 2019 to develop its fuel cell and powertrain technology.

The new funding will unlock investment from American Airlines, International Airlines Group (IAG) and ITOCHU Corporation.

ITOCHU has signed an agreement to act as ZeroAvia’s sales representative in Japan. Series C funding was co-led by Airbus, Barclays Sustainable Impact Capital and NEOM Investment Fund, with UK Infrastructure Bank joining as a cornerstone-level investor.

The new facility will complement ZeroAvia’s Propulsion Center of Excellence in Washington State which is focusing primarily on electric motors and power electronics. The company also has plans to expand its R&D and aircraft testing centre at Cotswold Airport in Gloucestershire.

ZeroAvia has a longstanding partnership with Glasgow and Aberdeen airports and signed an agreement last year with ScottishPower to develop low-carbon hydrogen supply for key airport locations.

Its engines can reduce operating costs for airlines and would cut aviation’s contribution to global warming by emitting only water. The company hopes an engine for up to 20 seat planes will enter service in 2026 and it is working on a powertrain for 40 to 80 seat aircraft.

Highlands and Islands routes are potentially early users of zero-emission flight technology.

Scotland’s First Minister John Swinney and the Labour government’s Scottish Secretary Ian Murray visited Glasgow Airport today to meet ZeroAvia executives and partners supporting the project.

Mr Swinney said: “ZeroAvia’s decision to establish a base in Scotland – creating 350 highly-skilled jobs in the process – is the perfect illustration of Scotland’s growing reputation in the global transition to net zero.

“Attracting inward investment is critical to economic growth and we will continue to work with Scottish Development International and other partners bring more high quality jobs to Scotland.

“By setting out a strategic vision in priority areas such as the hydrogen we are sending a clear statement to investors and businesses that Scotland is at the heart of the green energy revolution.

“The Hydrogen Centre of Excellence will be at the forefront of fuel cell technology and offers a hugely promising and exciting proposition for sustainable aviation.”

Mr Murray said: “ZeroAvia’s expansion in Renfrewshire underlines everything that our Brand Scotland campaign champions – promoting Scotland’s goods, services and skilled workforce worldwide.

“It is a perfect example of the UK and Scottish Governments working together to drive innovation and manufacturing in Scotland.”

Val Miftakhov, founder and chief executive at ZeroAvia said: “Scotland has some unique advantages for ZeroAvia with strong aerospace and engineering skills, a burgeoning hydrogen sector and a clear aviation strategy with potential for early adoption of zero-emission flights.

“The aviation industry is on the cusp of the biggest transformation since the advent of the jet age, with entirely new propulsion systems set to power the next era of aviation – cleaner flights, better economics and better experiences for all.  

“With this new facility, Scotland has a big role to play in driving this transformation.”

Scottish Enterprise chief executive Adrian Gillespie said: “It is fantastic that we’ve been able to attract ZeroAvia to Scotland, not only for the jobs they will be creating, but for the hugely important role they can play in ensuring Scotland maintains its reputation for fostering innovative green technologies.

“ZeroAvia’s decision to come to Scotland is a real boost to our energy transition leadership, as well as being a further example of why Scotland is such a great place for inward investment.”