ZeroAvia, a Gloucestershire-based startup specializing in hydrogen-powered aircraft, is actively seeking new funding to secure its future amid shifting political and market conditions affecting the zero-carbon aviation sector. The company intends to sell a stake to an established aerospace and defense entity as part of a fundraising effort aimed at raising approximately £20 million by the end of the year.
The announcement comes after a challenging 2025 for ZeroAvia, marked by the resignation of founder and former CEO Val Miftakhov in May, as well as a failed attempt to raise £50 million in December. The previous fundraising shortfall ranked alongside a broader U.S. retrenchment from hydrogen initiatives under former President Donald Trump, which contrasted with earlier support from the Biden administration. As a result, ZeroAvia scaled back its operations, closing an electric motor production facility in Seattle and reducing its workforce by more than half. The company has since consolidated operations at its Kemble airfield site in the Cotswolds, where about 100 employees continue developing hydrogen fuel cell technology.
Christine Ourmieres-Widener, ZeroAvia’s chairman and former CEO of several European airlines, confirmed the company still holds cash reserves from a £23 million fundraiser in 2023 but is seeking additional capital to advance its technology toward commercial use within the next two years. The company anticipates receiving its first firm orders in the coming months.
Ourmieres-Widener noted that geopolitical developments, including the conflict involving Iran and disruptions at the Strait of Hormuz, have renewed interest in alternative energy sources among airlines and investors. She emphasized the growing challenges associated with sustainable aviation fuel supply and costs, suggesting hydrogen-based propulsion could play a critical role in the industry’s decarbonization efforts going forward.
Several major aerospace players have resumed or expanded their work on hydrogen propulsion systems, including Airbus, which recently launched a hydrogen venture with German engine manufacturer MTU, despite shelving its own standalone green aircraft project. ZeroAvia maintains partnerships with Marshall Aerospace, which specializes in aircraft modification, and French engine maker Safran, part of the CFM alliance with General Electric. Airbus remains a minor shareholder after participating in a previous funding round.
ZeroAvia is focusing on producing modular fuel cells rated at 200 kilowatts, designed to be combined for higher outputs, with a 600-kilowatt system suitable for powering aircraft carrying between 10 and 20 passengers. The company’s long-term goal is to develop high-temperature fuel cell technology capable of powering larger aircraft, potentially including models like the Airbus A220 and eventually the A320.
The company highlights several advantages of hydrogen fuel cells over battery-electric systems and direct hydrogen combustion, including fewer weight limitations and greater efficiency. However, challenges remain, particularly surrounding the safe storage of hydrogen, which is highly combustible.
As ZeroAvia pursues its next funding round and leadership transition, the company is refocusing on its most advanced technologies in efforts to bring hydrogen-powered aviation closer to commercial viability.