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# Ampaire Lands $19M to Certify a Hybrid Engine That Cuts Regional Fuel Burn by More Than Half
- URL: https://www.theinvestorsociety.com/ampaire-lands-19m-to-certify-a-hybrid-engine-that-cuts-regional-fuel-burn-by-more-than-half/
- Published: 2026-08-20T23:00:27.000Z
- Updated: 2026-08-20T23:00:26.000Z
- Author: The Editor
- Tags: Western Hemisphere

Ampaire, a Long Beach, California company developing hybrid-electric propulsion for regional aircraft, has raised US$19 million in a Series B round led by DiamondStream Partners, bringing total funding to US$68 million. The round drew two airline corporate venture arms: Alaska Star Ventures, backed by Alaska Air Group, and IAGi Ventures, the investment vehicle of International Airlines Group, parent of British Airways and Iberia. Other participants include Techstars Ventures, the Autodesk Foundation Impact Fund, the Los Angeles Cleantech Incubator Impact Fund, Elemental Impact, Pay it Forward Ventures, Massive Ventures, Venn10 Capital, Gaingels, Exit Fund, Sand Hill Angels, and Climate Capital.

The company, led by co-founder and chief executive Kevin Noertker, builds the AMP-H570, an integrated-parallel hybrid-electric power system, and the Eco Caravan, a retrofit of the Cessna Grand Caravan using that system. Rather than designing a new airframe, Ampaire replaces the propulsion system on aircraft already certified and in service. Flight testing shows the Eco Caravan burning 54% to 57% less fuel than the Pratt & Whitney Canada PT6A engine it replaces, with the AMP-H570 turbodiesel delivering roughly 50% savings in cruise and up to 70% when battery power handles takeoff. Ampaire has accumulated more than 38,000 hybrid-electric test flight miles. The funding will support Part 33 engine certification targeted for late 2027, followed by Part 23 supplemental type certification for the Eco Caravan, along with expanded engineering teams, supplier readiness, early manufacturing, and aftermarket support. The company is also developing hybrid-electric auxiliary power units with IAG to cut fuel consumption while aircraft sit on the ground. "Our work with IAG helps shape the application of our core hybrid-electric technology toward products relevant to commercial aviation," Noertker said.

## Market Context

The round lands in a sector that has been contracting rather than expanding. Lilium, the German electric jet developer, ended operations in 2026 with its prototypes going unsold; fellow German eVTOL company Volocopter entered bankruptcy proceedings; Netherlands-based hybrid-electric developer Maeve Aerospace failed despite backing from Delta Air Lines, SkyWest, and Japan Airlines; and hydrogen-electric startup ZeroAvia cut its workforce in half and saw founder Val Miftakhov step down after eight years as chief executive. Analysts describe the sector's core problem as high risk, long timelines, limited returns, and a requirement for capital far beyond what most rounds provide.

Ampaire's positioning is deliberately less ambitious, and that is the argument for it. Certifying a new aircraft from scratch takes many years and enormous capital, which is what exhausted several of its peers. Modifying the propulsion on an already-certified airframe through a supplemental type certificate is a narrower regulatory path with a defined precedent, and the target customer is regional operators for whom fuel is a dominant and volatile cost. The participation of Alaska Air Group and IAG matters for the same reason: airline venture arms invest where they can foresee an actual purchase, not only a technology thesis.

## The Signal

> "Our work with IAG helps shape the application of our core hybrid-electric technology toward products relevant to commercial aviation." — Kevin Noertker, co-founder and CEO, Ampaire

## Regional Relevance

**For the United States:** Ampaire operates from Long Beach, part of Southern California's aerospace corridor, and its path runs directly through the Federal Aviation Administration, whose certification decisions will determine whether hybrid-electric propulsion reaches commercial service this decade. Regional aviation matters disproportionately in the United States, where small operators connect communities that larger carriers do not serve and where fuel costs can decide whether a route stays viable. Alaska Air Group's involvement is notable given the carrier's dependence on short regional routes in terrain where alternatives to flying are limited, making a 50% reduction in fuel burn an operating question rather than an environmental one.

**For Europe and global aviation:** IAG's participation extends the technology toward European commercial aviation, where emissions regulation is stricter and carriers face mandated sustainable aviation fuel blending and carbon costs that US airlines do not yet bear to the same degree. The auxiliary power unit work with IAG targets fuel burned on the ground, a category that applies to every large aircraft regardless of route and offers savings without touching the propulsion of the main fleet. For operators in markets where regional aviation is essential infrastructure rather than a convenience, retrofit economics are more relevant than new aircraft programs most carriers cannot afford.

## The Other Side

**Is US$19 million enough to reach certification?** Total funding stands at US$68 million against Part 33 certification targeted for late 2027 and a supplemental type certificate after that. Aircraft certification routinely costs more and takes longer than projected, and the companies that failed in this sector generally did so between demonstration and certification rather than at the technical stage. Ampaire will almost certainly need to raise again before the first commercial delivery.

**How much do the fuel savings figures depend on conditions?** The 54% to 57% reduction is measured against a specific baseline engine, and the 70% figure applies only when battery power handles takeoff, a phase that represents a small share of a flight. Savings across a full route depend on stage length, payload, and how often batteries can be recharged between flights, and the company has not published route-level operating economics.

**Does airline venture backing signal orders?** Alaska Star Ventures and IAGi Ventures investing is meaningful validation, but corporate venture arms take small positions to observe technology as often as to commit to purchasing it. Ampaire has not disclosed firm orders, letters of intent, or delivery commitments from either airline, and the distinction between an investor and a customer is the one that determines whether the company reaches scale.

## Sources & Transparency

- [FinSMEs — Ampaire Raises $19M in Series B Funding](https://www.finsmes.com/2026/08/ampaire-raises-19m-in-series-b-funding.html?ref=theinvestorsociety.com)
- [Aviation Week — Ampaire Raises Series B, Studies Hybrid-Electric APUs](https://aviationweek.com/business-aviation/aircraft-propulsion/ampaire-raises-series-b-studies-hybrid-electric-apus?ref=theinvestorsociety.com)
- [FlightGlobal — Ampaire flies hybrid-electric Eco Caravan, as it lays out route to market](https://www.flightglobal.com/engines/ampaire-flies-hybrid-electric-eco-caravan-as-it-lays-out-route-to-market/151041.article?ref=theinvestorsociety.com)
- [Revolution.aero — FAA green lights Ampaire's hybrid propulsion system with G-1 paper](https://www.revolution.aero/deep%5Fdive/faa-green-lights-ampaire/?ref=theinvestorsociety.com)
- [Skift — Green Aviation Startups Face a Funding Crisis](https://skift.com/2026/06/05/green-aviation-startups-face-a-funding-crisis/?ref=theinvestorsociety.com)
- [FlightGlobal — Lilium Jet's journey ends on scrapheap as prototypes fail to sell](https://www.flightglobal.com/aerospace/2026/04/lilium-jets-journey-ends-on-scrapheap-as-prototypes-fail-to-sell/?ref=theinvestorsociety.com)