Aviation emissions have doubled since the mid-1980s, according to Our World in Data, and currently account for 2.5 percent of global carbon dioxide emissions. The United States is becoming increasingly committed to achieving net-zero emissions, with President Joe Biden signing an executive order aiming for a 50% decrease in greenhouse gas emissions by 2030. A big part of it is addressing air travel, which has spurred the development of sustainable aviation fuels and technology that promise to electrify flying.
"In recent years, the electrification of aircraft has progressed significantly. In 2008, the industry became the first to implement a worldwide, sector-wide climate action strategy. Since then, the industry has continued to recognize and respond to environmental concerns raised by consumers, environmental groups, governments, and other stakeholders by reducing emissions and noise levels; for example, "GreenBiz spoke with Stephane Lagut, a global aerospace and defense sector leader at Ernst & Young. "These elements, taken together, have made a greener, cleaner aviation industry unavoidable – even before the epidemic."
The pandemic had a significant impact on air travel. Nonetheless, air mobility investment firms are eager to engage in electric aviation. Take UP. Partners as an example. Last November, the corporation announced a $230 million venture capital fund to support electric aircraft startups. If further funding is available, we may see some all-electric passenger planes in the skies by 2026.
The unexpected pause in travel in 2020 may have aided this shift in certain respects. For instance, decreased demand resulted in poor aircraft utilization, prompting the decommissioning of older aircraft earlier than anticipated. According to Laugh, cost challenges in the system are also pushing the search for more cost-effective and sustainable planes.
Urban air mobility, a.k.a. flying taxis, may still be a long way off for the business. (For a list of some of those players, see our separate list.) Nonetheless, improvements in electric and driverless cars have reignited interest in using battery power more generally in aviation, according to Laugh. Funding, skill, battery capacity, and other energy storage problems will be the most significant roadblocks in the electric aviation business, but corporations aren't afraid of them.
According to market research firm MarketsandMarkets, the worldwide market for electric aircraft is expected to reach $27.7 billion by 2030. According to experts, the rise in this market is due to the increased usage of electric aircraft for freight and other purposes and the deployment of urban mobility aircraft.
Eight electric aircraft firms to keep an eye on in 2022 are listed below. These privately owned businesses are being highlighted because they are all moving into new stages of product development, raising funds to drive growth, or just pushing on with their objectives.
It's crucial to highlight that these aren't the only firms performing an excellent job; nonetheless, we believe you should be aware of them. We also picked electric aviation firms that haven't been featured before (see the 2019 list) and aren't affiliated with bigger enterprises or airlines.
Airflow
Airflow, located in the San Francisco Bay Area, develops a plane for middle-mile logistics and people.
One pilot will crew and fly the aircraft, which can transport nine people or 2,000 pounds of cargo. The startup was founded by a team from the previous Airbus Vahana eVTOL program, which worked on an electric-powered personal air vehicle prototype.
Airflow plans to build completely autonomous cargo-carrying vehicles during the next decade. For the time being, the business is concentrating on developing its STOL (electric short takeoff and landing) aircraft. To assist improve its aircraft, Airflow has formed collaborations with Honeywell and Tailwind Air Service. Airflow will test Honeywell's traffic radar technology on its aircraft and create customized avoidance algorithms as part of its agreement.
"Honeywell understands the effect that an eSTOL manned aircraft may have on passenger and middle-mile logistical operations and aviation's long-term sustainability. We want to be a part of that journey and future with our technology, "In a news statement, Honeywell Aerospace's vice president and general manager of urban air mobility, Stéphane Fymat, stated. "Airflow was created by some of the industry's most experienced experts. We're delighted to work with them to achieve their short- and long-term objectives of expanding the advantages of aviation while also reducing carbon emissions with an electric aircraft."
The firm hasn't revealed its financial sources yet, but it says on its website that it will shortly share venture capital investment. CEO Marc Ausman, a former senior strategist on the Airbus Vahana program, leads Airflow. Before founding Airflow, Ausman had leadership positions at Yuneec, Eclipse Aviation, and the US Navy.
Beta Technologies, located in Burlington, Vermont, develops electric vertical takeoff and landing (eVTOL) aircraft for the freight and logistics industries. The firm was founded in 2017 as CEO Kyle Clark's final thesis project in college. Eventually, he immersed himself in aircraft design, settling on the idea Beta is promoting today.
According to a spokeswoman, the company has funded around $450 million, including a $368 million Series A round in May. It has received funding from a variety of sources, including the Amazon Climate Pledge Fund.
But Beta isn't only making electric planes; it's also setting up quick-charging stations at airports and working on a training program for electric vertical pilots and maintenance personnel with CAE, a Canadian simulation technology firm. According to Clark, from here to Arkansas, Beta has more than 60 quick-charging stations up or in the works.
Clark told GreenBiz, "The future of transportation is electric, and Beta allows that." "We're developing all of the parts required for the deployment of electric aircraft, including the aircraft and a cross-country charging infrastructure that supports all-electric vehicles, including eVTOLs, trucks, and automobiles, not just our own."
Beta developed, tested, and flew its first eVTOL aircraft, Ava, in under a year, as part of its unwavering aim to extend electric aviation globally. Alia, which has a 50-foot wingspan and will be the aircraft Beta takes through FAA certification, was designed using lessons learned from the company's flagship aircraft. Alia, according to Clark, is a "zero operating emissions aircraft" that lowers material waste incurred in the manufacture and ongoing maintenance, making it a more environmentally friendly mode of transportation for a variety of applications.
Heart Aerospace, a Swedish electric aviation firm, is working on a 19-passenger electric plane with a 250-mile range and a backup generator for energy reserve and range extension. United Airlines and commercial aviation holding firm Mesa Air Group bought 200 of Heart Aerospace's first electric aircraft, which the company named Heart ES-19.
Last summer, the startup raised $35 million in a Series A fundraising round headed by Bill Gates's Breakthrough Energy Ventures and United's venture arm. Heart Aerospace was founded in 2018 due to a research project at the Chalmers University of Technology in Sweden, and it was a member of Y Combinator's Winter 2019 batch. According to TechCrunch, the company's arrangement with United and Mesa was announced in conjunction with its Series A and included the option of acquiring up to 100 more planes.
"We're not trying to create something new. Many firms offer extremely new aircraft designs, some of which have spent years in subscale testing merely to show the aircraft's fundamental capabilities. "In a press release, Anders Forslund said. "By depending on a traditional aircraft design, we could avoid these difficulties," adds Forslund. "We'll be able to dedicate practically all of our efforts to formal development — getting this plane certified and into commercial operation."
Heart Aerospace has collected $37.3 million to build its electric aircraft since its founding, and the business expects to produce its first commercial plane by 2026. Following the successful flight of a subscale model of its Heart ES-19 aircraft in December, we anticipate the business to continue to provide good development reports.
Hydrogen
Headquartered in Los Angeles, Universal Hydrogen is on a quest to make hydrogen the universal fuel of choice, allowing for a flexible and carbon-free future. The business created a modular capsule technology solution for hydrogen transportation that may be used to power electric planes. Universal Hydrogen also produces conversion kits for retrofitting existing regional airplanes with hydrogen-electric powertrains compatible with modular capsule technology.
In October, Universal Hydrogen received $62 million in investment to help it get closer to flying its hydrogen fuel cell powertrain on a small aircraft for the first time in 2022. According to the business, the modular capsules are more enticing than traditional hydrogen storage methods since they are lighter.
In December, Universal Hydrogen announced a collaboration with Connect Airlines to help it become the first zero-emission airline in the United States. The airline is ordering 24 green hydrogen conversion kits from Universal Hydrogen to shift to a true zero-emission operation. Other airline operators have signed letters to purchase Universal Hydrogen's conversion kits.
Wright Electric
In New York, Wright Electric develops technology for big commercial airplanes and is currently building its flagship electric aircraft. The Wright Spirit will be a zero-emission 100-passenger jet with a one-hour range, while the Wright 1 will be a 186-seat single-aisle plane with an 800-mile range.
The company's goal is to eradicate carbon emissions from all trips under 800 miles. Thus single-aisle aircraft, which account for 45 percent of all aviation emissions, are being targeted. Electric motors, high-frequency inverters, and customizable propulsion systems are among the technologies Wright intends to create. The business is developing motors and inverters and will begin work on propulsion fans later this year. Following 2022, Wright will begin testing in preparation for the launch of the Wright Spirit in 2026 and the Wright 1 in 2030.
NASA, the US Department of Energy, Y Combinator, Lionheart Ventures, the US Air Force, and other investors have contributed to Wright's success. The company's electric motors are designed to scale from 500 kilowatts to four megawatts.
In a news statement, Wright CEO Jeff Engler remarked, "The power and weight exhibited with our new 2 MW motor will become the foundation for any new electric aircraft and is a crucial technology in our megawatt system."
After securing a $35 million Series B round in December, this hydrogen-electric aircraft developer is laser-focused on its expansion aspirations.
To reduce emissions, ZeroAvia builds hydrogen-electric aircraft. The business started in San Carlos, California, in 2017, but it relocated to England last year. ZeroAvia has progressed significantly in the development of its commercial product. In 2019, ZeroAvia completed electrical testing of its original powertrain design, and in August, the business conducted ground testing on its hydrogen aircraft engine.
The business conducted 35 test flights of its six-seat prototype in its inaugural HyFlyer I project.
ZeroAvia is developing a 600-kilowatt hydrogen-electric powertrain for a 10-20 passenger aircraft for its HyFlyer II project, with flight testing scheduled for early 2022. Alaska Airlines, ASL Aviation Holdings, and Mitsubishi Heavy Industries Regional Jet Division have all signed commercial agreements with the firm. More than 460 pledges to deploy ZeroAvia's hydrogen-electric engines and other initiatives have been obtained.
Joby Aviation
Joby Aviation executed a $6.6 billion SPAC merger with Reinvest Technology Partners to take the firm public. Joby Aviation will be the new company's name, and it will trade on the NYSE under the ticker code JOBY.
Joby wants to join the all-electric air taxi business in 2024 with four-passenger emissions-free planes that can fly up to 150 miles on a single charge and reach speeds of up to 200 mph.
Joby is well-positioned to disrupt the eVTOL market and win significant market share in this relatively nascent sector, having completed over 1,000 test flights over the previous ten years.
Knowing that you're not alone if you're considering investing in Joby Aviation.
Toyota Motors, Uber, Zynga founder Mark Pinkus, early Tesla investor Jeff Skroll, and Linkedin founder Reid Hoffman are among Joby's supporters.
Joby purchased Uber Elevate to build up its air taxi company and prepare for significant expansion in the next years to compete in the eVTOL industry. In exchange, Uber increased its investment in Joby Aviation to $125 million, giving it a stake in the newly created firm once the SPAC merger is completed.
Joby teamed with Toyota to help build its aircraft in a newly planned manufacturing factory, which has the potential to cut the cost of each aircraft significantly over time.
Joby isn't making much money right now, so the $4 billion value may surprise some investors. That's reasonable, but Joby has plans to boost revenue fast to meet the rising demand for urban air travel to alleviate road congestion.
Joby expects to start making money in 2024, with a target of $20 billion in annual sales by 2030.
If Joby can reach $2 billion in sales by 2026, the company's entire worth is likely to be between $20 and $30 billion. If Joby achieves its objectives, investors will see a 3 to 5x increase in value over the following five years.
Due to its 700+ member team, ten years of flying experience, and key collaborations with Uber, Toyota, and the Department of Defense, Joby is much more established than rivals like Blade or Archer.
Joby is still a promising eVTOL stock to purchase, and at under $6 per share, it might be a bargain.
eHang
eHang is a Chinese eVTOL manufacturer that aspirations to disrupt the AAV industry with its cutting-edge electric aircraft.
The EH216 is the company's flagship eVTOL, and it expects to grow manufacturing in the future.
The EH 216 is a completely self-contained, stunningly designed vehicle that can reduce traffic congestion for short to medium-range excursions. Over 10,000 EH 216 experimental flights (including passenger transport) were successfully completed by eHang in 2020.
Consider eHang an early contender in the EVTOL race since it is one of the few eVTOL firms that is now profitable.
eHang delivered 22 EH216 and produced $8.4 million in sales in the fourth quarter of 2020.
Of course, like other Chinese publicly listed firms, EH stock has several extra risks. In February 2021, the stock of eHang reached a high of $125 before Wolfpack Research, a well-known short-seller, produced a bearish report titled "Ehang: A Stock Promotion Doomed to Crash and Burn."
Several flaws with eHang's sales data and other concerns inside the organization are cited in the unfavorable assessment. Since then, EH stock has dropped by more than 80% as the firm seeks to repair its reputation.
EH stock has a Price to Sales Ratio of 52 and seems expensive from a fundamental aspect, with just $27.6 million in 2020 revenue.
I don't invest in Chinese equities for various reasons. Still, eHang is an early disruptor with a new AAV manufacturing facility in Yunfu City, China, that might help it grow production.
Final Thoughts
It's OK to fantasize about a world with flying taxis. If that sounds appealing, consider purchasing a small amount of JOBY stock.
Just make sure you're aware of the dangers it poses.
After all, the eVTOL industry - and Joby Aviation's stock price - aren't certain to take off.
David Moadel did not hold any positions in the securities mentioned in this article (directly or indirectly) at publishing.
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