LONDON, UK: HydrogenOne, a fund based in London that invests in clean hydrogen for positive environmental impact, has announced a £7 million investment in Cranfield Aerospace Solutions Ltd (CAeS) on March 24, 2022.

Today, HydrogenOne and its co-investors are excited to announce that Britten-Norman, the manufacturers of the Islander aircraft, and CAeS, pioneers in hydrogen-electric fuel cell propulsion technology, have signed a Heads of Terms agreement to merge and create the world’s first fully integrated, zero-emissions sub-regional aircraft. The aircraft is planned to enter service in 2026, making it an industry first.

The merger will be completed in mid-2023, subject to due diligence. HydrogenOne, Safran Corporate Ventures, and the UAE-based venture capital firm Strategic Development Fund are part of a consortium of CAeS investors that will invest up to £10 million in the new company, including up to £5 million from HydrogenOne. Britten-Norman’s existing owners, including lead investor Alawi Zawawi, will also join the new business. The funding will anchor further investments being raised to support the growth of the merged entity.

The new entity is responding to the increasing demand from airlines and operators for an Original Equipment Manufacturer (“OEM”) backed aircraft that can enable zero-emissions operations. By combining CAeS’s pioneering development of a hydrogen-electric fuel cell propulsion system with Britten-Norman’s existing and proven aircraft technology, they have created a new route to market. Certification for a passenger-carrying service is planned for 2026.

The two companies have been working together on Project Fresson for over two years. The project aims to develop the technologies required to enable the hydrogen propulsion system for the Britten-Norman Islander. The UK Government and global investors have backed the project with over £14 million in private funding.

Simon Hogan, Chairman of HydrogenOne, said, “We are proud to have led this funding round that will create a new leader in green aircraft manufacturing in the UK. Our investment in clean hydrogen for a positive environmental impact is central to this investment and will help move global aviation towards zero-emissions operations.”

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