Benzinga | Dec 13, 2021 11:35AM EST

United Airlines Invests In Zero-Emission Engines For Regional Aircraft

* United Airlines Holdings Inc (NASDAQ:UAL) invests in zero-emission, hydrogen-electric engines for regional aircraft through an equity stake in ZeroAvia, a company focused on hydrogen-electric aviation solutions. Financial terms were not disclosed.

* Under the agreement, United will pursue a conditional purchase agreement for 50 ZeroAvia ZA2000-RJ engines, with an option for 50 more, enough for up to 50 twin-engine aircraft.

* ZeroAvia is accelerating the development of its ZA2000 engine and will soon begin ground tests of its ZA600 in a 19-seat aircraft, with the aim of entering commercial service with this smaller engine by 2024.

* ZeroAvia has already secured experimental certificates for two prototype aircraft from the FAA in the U.S. and the Civil Aviation Authority in the U.K. and has passed significant flight test milestones.

* United Airlines held cash and cash equivalents of $19.6 billion as of September 30, 2021.

* Price Action: UAL shares are trading lower by 6.54% at $41.18 on the last check Monday.