Hydrogen aviation: ZeroAvia cuts workforce and defers ZA600 certification

Have you ever wondered what happens when a hydrogen aviation pioneer hits a funding wall? That’s exactly the spot ZeroAvia finds itself in after a smaller-than-expected financing round late last year that only bought them about two more years of runway—nowhere near the boost they snagged in 2024. To cope, the UK-US startup has had to say goodbye to roughly half its crew, reshuffle its certification plans, and tighten the belt across all its operations.

CEO Val Miftakhov says they’ve gone from around 300 people down to about 150 spread across Everett, Kemble, and Sandwich. The cuts kicked off in August and dragged on into this month, touching almost every corner of the business—from propulsion engineers in Everett to the test crews in the UK. “We’ve had to zero in on our top priorities,” Val explains, noting the lean team is laser-focused on certifying the hydrogen fuel cell module by 2027, a critical piece in their broader hydrogen aviation vision.

Funding crunch and runway recalibration

ZeroAvia’s funding story has been a bit of a rollercoaster. After hauling in $150 million during their 2024 Series C, they closed a smaller, undisclosed round in December that fell short of expectations. That cash stretched the runway by roughly 24 months, but it wasn’t enough to certify the full ZA600 powertrain and scale up the 2 MW ZA2000 at the same time. With investors staying wary of hydrogen aviation—especially after Universal Hydrogen’s high-profile collapse—the company chose to rein in spending rather than maintain an aggressive burn rate.

Certification realigned to fuel cell module

Originally, the plan was full ZA600 certification by 2026, but the playbook’s been revised: they’re now zeroing in on certifying just the standalone hydrogen fuel cell system by 2027 via UK CAA and FAA channels. This pivot highlights their focus on maturing core fuel cell technology first. Full powertrain approval is pushed out another 12–24 months. While ground tests at Kemble crank on full throttle, flight trials are parked for 12–18 months—even though the Do 228 and Cessna Caravan testbeds were ready to take off. By tightening their scope, ZeroAvia hopes to tap markets clamoring for modular power units in civil, defense, and auxiliary roles.

Rethinking sites and production plans

On the facilities front, ZeroAvia’s closing its Sandwich site and consolidating R&D at Kemble. At the same time, production prep is shifting to a new facility outside Glasgow, with a ramp-up expected in 2027–2028. Work on the 600 kW electric propulsion system (EPS) in Everett has slowed, though that line remains strategically important for future defense contracts. In leadership changes, CFO Georgy Egorov will depart at quarter’s end, following the earlier exit of CTO Paul Murphy.

Sector headwinds and competitive pressures

ZeroAvia’s retrenchment mirrors broader challenges in the hydrogen fuel cell technology arena. Last year’s bankruptcy of Universal Hydrogen and Airbus’s pause on commercial H₂ aircraft underscore the hurdles: steep costs, patchy refueling infrastructure, and the energy-density puzzle. Yet airlines are still eyeing long-term savings from hydrogen fuel cells, so interest in sustainable energy solutions hasn’t dried up—just become more selective. Snapping up HyPoint in 2022 bolstered ZeroAvia’s tech base, but nailing execution now depends on razor-sharp capital management.

Implications for hydrogen fuel cell technology

By doubling down on the fuel cell module, ZeroAvia is playing to its strengths and chasing quicker wins with customers hungry for zero-emission power—think defense agencies and industrial partners looking for clean backup energy. The EPS side of the business in Everett remains a wildcard—vital for future retrofit programs but on hold until new funding arrives. Meanwhile, rolling out these standalone units could jump-start hydrogen infrastructure and speed up adoption of hydrogen fuel cells across multiple sectors.

All told, ZeroAvia’s recent moves throw a spotlight on the gap between hydrogen aviation’s promise and the reality of cost and timeline. As development schedules stretch and capital tightens, the big question is whether a Series D can bridge the divide—or if the hydrogen aviation sector will need to chart a completely new course to keep its sustainable energy dreams airborne.