Electric aviation companies to watch
Airlines Show Growing Interest in Electric and Hydrogen-Powered Aircraft
Electric aviation may have seemed like just a dream a few years ago, but the industry is on the rise.
Aviation emissions have doubled since the mid-1980s, Our World in Data reports, and they account for 2.5 percent of global carbon dioxide emissions. The U.S. is becoming more ambitious about reaching net-zero emissions, and President Joe Biden even signed an executive order to push for a 50 percent reduction in greenhouse gas pollution by 2030. Addressing air travel is a large part of that, which has inspired innovation in sustainable aviation fuels, as well as in technologies that promise to electrify flight.
“The electrification of aviation has come a long way in recent years. In 2008, the industry adopted a global, sector-wide climate action framework — a world first. Since then, the industry has continued to recognize and respond to environmental concerns expressed by consumers, the environmental lobby, governments and other players by, for example, cutting emissions and reducing noise levels,” Stephane Lagut, a global aerospace and defense sector leader at Ernst & Young, told GreenBiz. “Together, these factors have made a greener, cleaner aviation sector inevitable — and that was before the pandemic struck.”
Air travel took a big hit because of the pandemic. Still, air mobility investments groups are ready to pour funds into electric aviation. Take UP.Partners. The firm launched a $230 million venture capital fund last fall to back electric aviation companies. With more financial backing, we may see some all-electric passenger aircrafts in the sky by 2026.
In some ways, the unexpected halt in traveling in 2020 may have helped boost this transition. For one thing, free-falling demand led to low aircraft use, triggering decommissioning of older aircraft sooner than planned. Cost pressures on the system are also driving exploration of investments in more cost-effective and sustainable aircraft, Lagut said.
The industry may still be far off from urban air mobility, a.k.a flying taxis. (See our separate list for some of those players.) Still, advancements in electric and autonomous vehicles have sparked renewed excitement about integrating battery power more broadly in aviation, Lagut explained. Funding, talent, battery capacities and other energy storage concerns will be some of the biggest hurdles in the electric aviation industry, but companies aren’t shying away from the challenges.
The global market for electric aircraft is projected to reach $27.7 billion by 2030, according to market research company Markets and Markets. Experts say the growth in this market stems from urban mobility aircraft deployment and the increasing use of electric aircraft for cargo and other activities.
Below, you can find six electric aviation companies to watch in 2022. We’re featuring these privately held companies because they are all moving into new phases of product development, raised funding to fuel growt, or are simply powering forward on their missions:
- Airflow is building an aircraft for middle-mile logistics and passengers.
- Beta Technologies has raised $511 million in funding across two rounds from companies including Amazon and Hula.
- Heart Aerospace closed a $35 million Series A funding round in summer 2021, led by big names, including Bill Gates’s Breakthrough Energy Ventures and United’s venture arm.
- Los Angeles-based Universal Hydrogen is on a mission to make a flexible and carbon-free future possible by making hydrogen the universal fuel choice.
- Wright Electric builds technology for large commercial airplanes and is currently developing its flagship electric aircraft.
- ZeroAvia hydrogen-electric aircraft developer is hyper-focused on its growth plans, after closing a $35 million Series B in December 2021.
It’s important to note that these aren’t the only companies doing the best work, but these are some we think you should know about. We also chose electric aviation companies we haven’t previously featured (check out the 2019 list) and that aren’t attached to projects managed by larger corporations or airlines. greenbiz.com