The green aviation revolution is continuing apace with the news out today that the UK government has pledged more financial support to develop zero-carbon and ultra-low-emission aircraft technology.
The UK’s aerospace technology research programme, the Aerospace Technology Institute (ATI), is to receive record levels of government funding, Industry Minister Lee Rowley confirmed today. The ATI will receive £685 million from the government for the financial years 2022-2023 through to 2024-2025, an increase of £235m on the previous three-year period. Industry will provide co-funding, taking the total to more than £1 billion.
Funds will be used to support the development of zero-carbon and ultra-low-emission aircraft technology.
“Since its formation in 2013, the Aerospace Technology Institute has been an enormous success, already funding world-leading innovations like hydrogen aircraft and 3D printed components. These projects are making a real-world impact and could one day help the global aviation industry transition to net zero,” said UK Industry Minister Lee Rowley. “Today’s commitment is a sign of our increasing ambition and will give large and small businesses the confidence to invest in the technologies that will bring civil aviation into the next generation.”
“I am delighted that the UK Government’s commitment to R&T investment in sustainable aircraft has today resulted in an uplift to £685m for the UK aerospace sector over the Spending Review period, in addition to the commitment at the Budget that the ATI Programme will continue until 2031,” said Gary Elliott, Aerospace Technology Institute CEO. “With the support of the Aerospace Growth Partnership, and with Government investment matched by industry, the ATI will be able to invest more than £1 billion over the next three years in the cutting-edge technology needed to move towards our net zero targets. This has allowed us to reopen ATI funding to new applications from April and we will work with BEIS and Innovate UK to ensure that this funding drives UK economic growth and reduces global aviation emissions.”
The ATI Programme will reopen to new funding applications from April 4.
Founded in 2013, the ATI Programme has received an extension to 2031 and forms a key component of the UK Government’s Jet Zero policy, which includes the Jet Zero Council, established to convene government, industry and academia, and jointly chaired by the Business Secretary and Transport Secretary. A final Jet Zero strategy will be published this summer.
This funding is in addition to £180m of new government funding announced in the Net Zero Strategy to support the deployment and commercialisation of Sustainable Aviation Fuel plants in the UK.
Previous projects supported by ATI include ZeroAvia’s six-seat hydrogen-electric aircraft, which was awarded a grant in 2019 to produce a zero-carbon engine that was recently demonstrated on a successful test flight for a six-seater aircraft. This latest round of funding will enable the consortium to scale up its hydrogen technology for use on a 19-seater aircraft. It will also enable ZeroAvia to enter the formal certification process at the end of the project, so that customers can expect to fly on zero emissions aircraft as early as the end of 2023.
Meanwhile, Irish lessor Avolon has announced that it has now placed all 500 VX4 orders with airlines around the world. In June 2021, Avolon ordered 500 VX4 eVTOL aircraft from Vertical Aerospace, valued at US$2 billion.
The latest order of 100 VX4 aircraft from Avolon comes from Turkish conglomerate Gözen Holding, owner of Freebird Airlines, which has committed to purchase or lease up to 50 VX4 eVTOL aircraft, with the option to purchase or lease up to 50 additional aircraft.
As part of the agreement, Avolon, through its investment and innovation affiliate Avolon-e, has formed a strategic partnership with Gözen Holding to commercialise zero-emissions eVTOL travel and develop an industry leading urban air mobility (UAM) platform in Turkey. Avolon and Gözen Holding will collaborate in a Working Group to identify and target local partners, research potential market opportunities, as well as infrastructure and certification requirements for UAM. The partnership will allow Avolon to leverage Gözen Holding’s expertise in airline operations, pilot training, airport handling and security, airline representation as well as digital platforms, while Gözen Holding will benefit from Avolon’s industry expertise and global platform of UAM Working Groups, which are active in Brazil (with GOL), Greenland (with Air Greenland), Japan (with Japan Airlines) and Southeast Asia (with AirAsia).
“Today marks an important milestone on our eVTOL journey, as we have now fully placed our VX4 orderbook with some of the leading international airlines and aviation companies all over the world,” said Dómhnal Slattery, CEO of Avolon. “The opportunities to deploy the VX4 are enormous and, as is evident with our placement progress to date, zero emissions eVTOL air travel will reshape the short-haul travel market. Our partnership with Gözen Holding will create a pioneer in UAM in Turkey, bringing sustainable air travel to the region.
“The strong demand for our VX4 orderbook and for zero emissions travel, confirms our view that demand for eVTOL aircraft would always outstrip supply. As a result, we will continue working with other partners that want to purchase or lease the VX4 in order to fully size the potential market and demand for this aircraft.”
Mekin Gözen, CEO of Gözen Holding, commented: “We are delighted to announce our partnership and VX4 order with Avolon. As an integral part of the Turkish aviation industry, we feel it is incumbent upon us to be at the forefront of the sustainability movement and that is why we identified Avolon, and Vertical’s VX4, as the zero-emissions eVTOL aircraft that will revolutionise air travel. With over 15 million people living in Istanbul, the city is consistently faced with congestion which hinders both the cities’ development and attractiveness as a tourist and business location. We strongly believe that the deployment of the VX4 will dramatically reshape Istanbul and the rest of Turkey. Our partnership with Avolon will see us create an eVTOL ecosystem in the country and is the first step in delivering sustainable air travel to the region, position it as a global leader.”
Stephen Fitzpatrick, Founder and CEO of Vertical commented: “We are delighted that Turkey has been added to the global destinations where the VX4 will fly. We look forward to welcoming Gözen into the Vertical family and continue to celebrate our growing partnership with Avolon."
Avolon notes that its success in placing 550 VX4s in under a year emphasises the “high demand for the aircraft and displays the significant growth in market appetite for eVTOLs”.
Together with its partners including Rolls-Royce, Honeywell and Microsoft, along with GKN, Leonardo and Solvay, Vertical confirms that it is now in the later build stages of the VX4 with its full test flight program to commence later in 2022.
Rather than a green aircraft replacement, eVTOL aircraft are being hailed as a replacement for ground transportation on shorter journey legs – city to main airports for example – but significant challenges remain in the development of these aircraft, which have very ambitious milestone targets until certification. Airlines and lessors are seeking to take a first-mover advantage and add to their green credentials with little outlay risk with commitments for aircraft and working group partnerships. However, the momentum is continuing and with industry and government funding continuing to step up, this emerging sub-section of the aviation industry is impossible to ignore. Airline Economics would love to hear your thoughts on the potential impact of eVTOLs on the aviation market.