The Scottish National Investment Bank (SNIB), Scotland’s state-owned development bank, has invested £20 million in ZeroAvia, the developer and manufacturer of zero-emission engines for commercial aviation.

Founded in California before growing a presence in the UK, ZeroAvia is developing the world’s first zero-emission, hydrogen-electric engines for commercial aircraft.

The investment completes the Series C funding round for the company, which is set to bolster the burgeoning aerospace supply chain in Scotland as the company seeks to create a manufacturing facility here.

Highlands and Islands routes are potentially some of the earliest flights to utilise zero-emission flight technology, and this latest financing is said to be a key step in the company’s production plans to bring its clean aviation engine technology to market.

In Scotland alone, the aviation firm has a longstanding partnership with Glasgow and Aberdeen airports (AGS Airports), and signed an agreement earlier this year with ScottishPower to develop low-carbon hydrogen supply for key airport locations.

Speaking on both the funding and Scotland as a strategic location, Val Miftakhov, founder and CEO at ZeroAvia, said: “We have closed an exceptionally strong financing round to help us deliver the clean future of flight for the entirety of aviation.

“As a purpose-driven impact investor, the Bank is an ideal partner for ZeroAvia. Scotland’s ambitious net zero targets, its strategic focus on hydrogen and its strong existing aerospace skills base make it an attractive place for ZeroAvia’s UK production operations as we scale into a major aerospace manufacturer.”

The funding is also the SNIB’s first investment in hydrogen-based technology and the sustainable aviation sector.

Robin Tayal, who serves as investment director at the bank, said: “Decarbonising aviation is one of the key environmental challenges we face and it is fundamental to the net zero transition. We are pleased to address it by investing in ZeroAvia, enabling critical research and manufacturing.

“ZeroAvia has a robust long-term plan for the growth of its technology, which will bring tremendous benefits to the wider supply chain and manufacturing sector.”

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In funding the aviation firm, SNIB will join investors including American Airlines, International Airlines Group (IAG), and ITOCHU Corporation.

The Series C was co-led by Airbus, Barclays Sustainable Impact Capital and NEOM Investment Fund, with UK Infrastructure Bank joining as a cornerstone-level investor.