Hydrogen aviation startup ZeroAvia is pulling back from the Seattle area as it scales back ambitions
ZeroAvia was flying high. After launching in California in 2017, the clean aircraft startup was growing, establishing an R&D facility in Everett in the shadow of aerospace juggernaut Boeing and test flights in the United Kingdom. Funding was being raised from government grants and investors including Bill Gates’ Breakthrough Energy Ventures and Amazon’s Climate Pledge Fund.
In May 2023, the company unveiled a retired turboprop from Alaska Airlines, wrapped in ZeroAvia’s navy and sky blue graphics, as part of a collaboration to decorate art with sustainable technology.
“The world’s largest commercial hydrogen-powered aircraft is being developed right here in the largest, most innovative region in Washington state,” said then-Gov. Jay Inslee at the event at Everett’s Paine Field.
Three years later, the startup is in a very different place.
Without the sales force, ZeroAvia’s operations in Washington have been suspended. The aircraft were never converted to hydrogen powertrains and the fate of the original 136,000-square-foot Paine Field R&D facility is uncertain. Product development has shifted to the UK, and that work has shrunk. The company moved from California.
Last month ZeroAvia announced that CEO and founder Val Miftakhov had stepped down “to pursue new opportunities.” At least three other members of the C-suite also left.
Although there have been problems, the company says it is moving forward.
“The company’s vision and mission are the same – hydrogen electric powertrains for aircraft, carbon emissions, reduced costs – these are the goals,” Chief Strategy Officer James McMicking told GeekWire. “But we have to adjust the pace and focus on what is happening in the market.”
‘A wonderful opportunity’
Aviation is proving one of the most difficult sectors to decarbonise. Traditional jet fuel is more dense and more widely available than planet-friendly alternatives like hydrogen, batteries and sustainable aviation fuels – and that challenge is at the heart of ZeroAvia’s struggle.
The startup is developing hydrogen fuel cells to generate electricity, which powers electric motors to turn airplane propellers. The plan was to build a product line at the Everett site that includes fuel cells, power electronics, compressors and advanced electric motors, giving companies the opportunity to buy complete engines and parts.
But hydrogen has struggled to take off in the US, and while momentum has grown under the Biden administration, President Trump has scaled back support for the sector after taking office last year.
Snohomish County Executive Dave Somers was sympathetic to ZeroAvia’s struggle.
“Any business can face tough times, and those ups and downs can be especially noticeable in businesses in emerging technologies or sectors,” he said in an email, wishing the company the best “as it faces its challenges.”
Last year, Bloomberg reported that the company is trying to quickly secure $150 million from investors to stay afloat by the end of 2028. McMicking declined to say how much money was raised. Previous rounds with government support amount to almost $300 million, and in 2023 Breakthrough Energy Ventures became the largest shareholder of ZeroAvia.
That funding includes $700,000 from the state of Washington, which was awarded two grants to support its Everett operations. ZeroAvia put up $5.5 million of its own money to lease and equip the R&D facility, which is owned by Snohomish County. By 2023, ZeroAvia would employ approximately 40 people locally.
Daniel Tappana, director of economic development for the Economic Alliance of Snohomish County, said ZeroAvia is a good fit for the region, with Boeing’s deep roots and a strong aviation industry with a skilled workforce.
“It’s been a great opportunity for new clean, green aviation technology,” Tappana said.
A renewed focus on fuel cells
Three years after its launch, ZeroAvia made its first test flight on a six-seater hydrogen electric plane in 2020. The company in 2024 announced that American Airlines plans to buy 100 of its hydrogen electric engines for its 65-seat Bombardier CRJ700 jets. It set a goal of selling hydrogen-powered systems on planes carrying up to 20 passengers by the end of last year, and Q400 planes – like the plane supplied by Alaska Airlines – as soon as next year.
The new plan is more modest: focus on the hydrogen fuel cell system, while the powertrain ambitions are still on hold. R&D in the UK is now focusing on projects including hydrogen refueling and on-board storage, with the team also working on high-temperature fuel cell stacks for large aircraft.
ZeroAvia sells fuel cell systems and is working towards certification with UK aviation regulators. Customers can integrate the technology into their systems, the implementation aims to complement the customized products. The company also sees opportunities for defense applications, including hydrogen-powered drones, especially in remote areas.
Work continues as ZeroAvia’s board searches for a new CEO. Board chairwoman Christine Ourmieres-Widener has been in charge of day-to-day operations for the past five months and will continue in that role until a replacement is hired. Miftakhov, who is based in California, “is still very committed,” McMicking said.
“We all feel comfortable that we have a good plan,” he said.
Hydrogen barriers
Aviation hygiene has proven a difficult sector to crack. Arlington, Wash.-based Aviation Aircraft laid off most of its employees last year after developing an electric plane. But other electric aircraft startups are thriving, including magniX, AeroTEC, Electra and Beta Technologies.
The California-based company Universal Hydrogen ran out of money in 2024 and closed – the future of Europe’s hydrogen-aviation ecosystem has been largely avoided, thanks in part to tight public funding.
When announcing the closure of Universal Hydrogen, co-founder Jon Gordon urged others to continue their studies, saying it was up to businesses like ZeroAvia, Airbus and others to realize the vision of hydrogen aviation.
“You can bet I enjoy them,” Gordon said on LinkedIn. “Our future may depend on it.”
