Why did we invest? — BluJ Aero

BluJ Aero is designing and manufacturing a Long-Range Zero-Emission VTOL (Vertical Take-off and Landing) aircraft powered by Hydrogen. The aircraft is being built to carry cargo and subsequently facilitate human travel. The Company’s UAV will use a hybrid Hydrogen-Electric Propulsion system through which they hope to cover a range of 800 Kms. The aircraft will be able to carry 1100 kgs of Cargo or seat up to 10 persons and fly at a speed of 450 kph. Being a VTOL aircraft it does not require a standard runway for take-off and landing. The company is planning to use the aircraft for freight services and inter-city travel. Since it is based on Hydrogen fuel, there will be zero emissions.

Sustainability in aviation

Before the COVID-19 pandemic, aviation accounted for around 2.4% of global CO2 emissions, with its overall contribution to climate change believed to be about 5%, with the impact of non-CO2 emissions considered. The nature of emissions in aviation is a crucial factor here. Aviation releases emissions high up in the atmosphere — including non-CO2 emissions and as a result are a much more significant climate concern than sectors with ground-based emissions. It is believed that the total climate warming impact of aviation today when these emissions are considered, could be two to four times higher than that of CO2 alone.

According to the ICAO (International Civil Aviation Organization), the United Nations specialized agency that oversees aviation, the path to zero emissions for the aviation sector by 2050 requires a combination of solutions where new propulsion and fuel technologies will play a major role.

Why Cargo?

Air cargo is fast emerging as a crucial sector in the logistics space in India. Indian airlines are increasing their cargo capacity, with the segment emerging as a critical and promising revenue stream in the last two years. India’s dedicated freighter fleet has seen a dramatic rise in numbers — from just five to 28 aircraft. The number is set to rise further as airlines are looking to add aircraft only for cargo operations, as it fared better than the passenger segment during the pandemic. According to the WorldACD air cargo rankings, the share of cargo carried into and out of India by sovereign flag carriers has increased from 2 percent to 19 percent. And for the first time, an Indian flag carrier has broken into the top ten carriers of cargo from India.

In an attempt to boost the air cargo industry, the government plans to establish 33 new domestic cargo terminals by 2024–25.

Indian airlines, during the last two years, have witnessed a 520 percent increase in cargo revenue.

Hydrogen is the way forward

Hydrogen as a fuel source will become widely available in India in the coming years. India is planning a $2 billion incentive programme for the green hydrogen industry, in a bid to cut emissions. The incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years. The goal of the National Green Hydrogen Mission was to make India the global hub of Green Hydrogen production and export. MNRE is accordingly developing the National Green Hydrogen Mission with the objectives of decarbonising major economic sectors, making India energy independent, and serving as an inspiration for the global clean energy transition.

Internationally also, local cargo payers have already partnered with hydrogen-based manufacturers and are looking to induct these aircraft into their fleets.

• In The United States, FedEx Express will begin testing the Hydrogen-powered aircraft developed by Elroy in 2023 within its middle-mile operations — a range of 300–500 miles.
• Last year, AYR Logistics committed to purchasing up to 100 of Elroy Air’s aircraft to augment and expand its humanitarian logistics business.

Stellar team

Amar was an engineering director at Skyroot Aerospace that built India’s first privately developed rocket. He has vast experience in working on aircraft design as part of his experience at GE and Colins Aerospace. Utham, the other founder, has more than 15 years of experience in aircraft design and testing with his experience at Boeing. He was a Design & Analysis engineering Lead at Boeing. The other founding members include Dr. Subbareddy who is an Assistant Professor at IIT-Tirupati, where they are currently building the proof of concept. Mr. Gnanagandhi, a former director of ISRO who built the first hydrogen bus in India, is working as a propulsion advisor with the team.

We at Ideaspring Capital believe that the team has the right mix of design and engineering expertise along with a good set of advisors and are best placed to build India’s first Long-Range Zero-Emission VTOL aircraft powered by Hydrogen.