Hydrogen aviation startup ZeroAvia retreats from Seattle area as it scales back ambitions

ZeroAvia was flying high. After launching in California in 2017, the clean aviation startup was expanding, establishing an R&D facility in Everett in the shadow of aerospace juggernaut Boeing and running test flights in the United Kingdom. It was raising cash 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 partnership to outfit the craft with sustainable technologies.

“The largest hydrogen-powered commercial aircraft is being developed right here in the greatest, most innovative state, the state of Washington,” said then-Gov. Jay Inslee at an event at Everett’s Paine Field.

Three years later, the startup is in a far different place.

Except for a sales team, ZeroAvia’s operations in Washington have ceased. The plane was never retrofit with hydrogen powertrains and the fate of the startup’s 136,000-square-foot Paine Field R&D facility is uncertain. Product development has shifted to the UK, and that work has narrowed. The company left 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 have also departed.

Despite the setbacks, the company says it’s moving forward.

“The vision and mission of the company is the same — it’s hydrogen electric powertrains for aviation, decarbonization, reduced cost — these are the goals,” Chief Strategic Officer James McMicking told GeekWire. “But we have to adjust the pace and focus based on what’s going on in the market.”

‘An incredible opportunity’

Aviation is proving one of the most difficult sectors to decarbonize. Traditional jet fuel is far more energy-dense and widely available than planet-friendly alternatives such as hydrogen, batteries and sustainable aviation fuels — and that challenge is central to ZeroAvia’s struggle.

The startup is developing hydrogen fuel cells to generate electricity, which powers electric motors to turn an aircraft’s propellers. The plan was to develop a product line at the Everett site including fuel cells, power electronics, compressors and advanced electric motors, giving companies the option of buying full engines as well as components.

But hydrogen has struggled to take off in the U.S., and while momentum was building under the Biden administration, President Trump slashed support for the sector after taking office last year.

Snohomish County Executive Dave Somers was sympathetic to ZeroAvia’s struggles.

“Any business can face ups and downs, and those ups and downs may be particularly notable for businesses in emerging technologies or sectors,” he said by email, wishing the company his best “as they work through their challenges.”

One year ago, Bloomberg reported the company was trying to quickly secure $150 million from investors to stay solvent through the end of 2028. McMicking declined to say how much was raised. Earlier rounds and government support come to roughly $300 million, and in 2023 Breakthrough Energy Ventures was ZeroAvia’s largest shareholder.

That funding includes $700,000 from Washington state, awarded across two grants to support its Everett operations. ZeroAvia put up $5.5 million of its own money to lease and prepare the R&D facility, which is owned by Snohomish County. By 2023, ZeroAvia employed roughly 40 people in the area.

Daniel Tappana, director of economic development for the Economic Alliance of Snohomish County, said ZeroAvia was a good fit for the region, with Boeing’s deep roots and a robust aviation sector with skilled employees.

“It was an incredible opportunity with some of the new emerging clean, green aviation technologies,” Tappana said.

Refocused on fuel cells

Three years after launching, ZeroAvia conducted its first test flight on a six-seat hydrogen-powered electric aircraft in 2020. The company in 2024 announced that American Airlines planned to buy 100 of its hydrogen electric engines for its 65-seat Bombardier CRJ700 jets. It set a target of selling hydrogen-powered systems for aircraft carrying up to 20 passengers by the end of last year, and for Q400 aircraft — like the plane provided by Alaska Airlines — as soon as next year.

The new plan is more modest: focus on the hydrogen fuel cell system, while powertrain ambitions are on hold. R&D in the UK now centers on systems including hydrogen refueling and onboard storage, with a team also working on high-temperature fuel-cell stacks for larger aircraft.

ZeroAvia is selling prototype fuel-cell systems and working toward certification with UK aviation regulators. Customers can integrate the technology into their own systems, which the startup aims to accommodate with customized products. The company also sees opportunities in defense applications, including hydrogen-powered drones, particularly in remote locations.

The work is underway as ZeroAvia’s board searches for a new CEO. Board chair Christine Ourmieres-Widener has been managing day-to-day operations for the past five months and will continue in that role until a successor is hired. Miftakhov, who is based in California, “is still very much engaged,” McMicking said.

“We all feel very comfortable that we’ve got a good plan,” he said.

Hydrogen’s hurdles

Clean aviation has proven a tough sector to crack. Arlington, Wash.-based Eviation Aircraft laid off most of its employees last year after developing an electric-powered airplane. But other electric aviation startups press on, including magniX, AeroTEC, Electra and Beta Technologies.

Fellow California aviation company Universal Hydrogen ran out of money in 2024 and shut down — a fate Europe’s hydrogen-aviation ecosystem has largely avoided, thanks in part to stronger public funding.

In announcing Universal Hydrogen’s closure, co-founder Jon Gordon urged others to stay the course, saying it was up to companies like ZeroAvia, Airbus and others to realize the vision for hydrogen aviation.

“You can bet I am cheering them on,” Gordon said on LinkedIn. “Our future may depend on it.”