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Summary
- ZeroAvia has secured a funding of $21.4 million to develop Hydrogen powered aircrafts
- The California-based start-up received backing from Amazon, Shell, and Hong Kong-based venture capital firm Horizons Ventures
- Hydrogen gas is being looked up as a game changer in the energy intensive sector
The devastation caused by the pandemic has called for sustainable development along with a quick transition to a lower carbon future. Hydrogen plane start-up ZeroAvia has secured a funding of $21.4 million to develop commercial aircrafts with zero carbon emissions. The funding round was led by Bill Gates’ Breakthrough Energy Ventures.
In addition, US ecommerce major Amazon contributed $2 billion from its Climate Pledge Fund. Hong Kong-based venture capital firm Horizons Ventures and FTSE 100 listed oil major Royal Dutch Shell (LON: RDSA) have also followed suit.
With the latest round of funding, ZeroAvia has been able to generate total funds worth $34.4 million so far, which will help it scale up its technology. Hydrogen is available in abundance in our atmosphere and is seen as a potential alternative to fossil fuels. Although, extracting hydrogen for commercial purposes is an expensive process.
Being capital intensive, the aviation industry has been hit really hard in the wake of the coronavirus pandemic. The objective of Shell to bring investments in this space is to make changes to its own portfolio as the oil major strives to become carbon neutral in the next few decades.
Also read: Top Executives at Royal Dutch Shell (LON:RDSA) Quit Over Green Transition Concern
ZeroAvia aims to power commercial jets for the long-haul flights capable of covering 3,000 miles by 2030. The company aims to scale up its technology for larger aircrafts with the recent funds raised. In addition, ZeroAvia has joined forces with International Consolidated Airlines Group (LON: IAG) to help in a swift transition to hydrogen-powered aircrafts for the future.
Also read: EasyJet and IAG Stocks Soften with Slump in Demand on New Quarantine Measures
Aviation is an energy consuming sector and currently draws its main raw material from fossil fuels. If alternative resources of energy are not explored, it would be difficult for the sector to make a transition towards a lower carbon future. Despite the turmoil in the sector due to the pandemic, it is heartening to see investments flowing into the sector and that too for sustainable development. With lockdown, travel bans and quarantine regimes in place, the aviation sector has witnessed a plethora of job losses and some prominent airlines are still facing existential crises.
Hydrogen as an aviation fuel
Hydrogen gas as a combustion fuel is as good as conventional fossil fuels. Hydrogen can be extracted from fossil fuels. Electricity, wind, solar, geothermal, and biomass energies can all be used to extract commercial hydrogen. For a sustainable future, solar and biomass energy can be used to extract hydrogen. Water is produced when hydrogen is burnt. Thus, the carbon emissions are reduced drastically.
The aviation sector is one such sector which uses lots of fuel as an input. Even though it is tough to get rid of conventional engines and therefore carbon emissions, however, such technological innovation and developments can certainly help the sector in achieving the carbon neutral milestone well before 2050.
