Embraer is seeing new horizons based on a new technology: the electrification of aircraft.
For this, the Brazilian manufacturer founded in October 2020 Eve, which was basically a separation of that part of the EmbraerX from the main unit. The startup allowed partnerships in the market, like the one performed with Zanite, and an investment of up to R$ 2 billion in the new subsidiary.
The focus is on creating an aircraft that can fly similar to a helicopter, the so-called UAM (Urban Air Mobility), which operates based on electric propulsion. Several companies also post in this sector, however, Embraer is in the lead mainly after months accumulating large agreements with several companies in the sector.
And recently, Eve started the process of certifying her eVTOL with ANAC (National Civil Aviation Agency). All development is happening from Gavião Peixoto Airport, and should last for several months, due to disruptive technologies.
This step with ANAC is a milestone for Eve, which is already in the process of certifying its eVTOL, ahead of other competing companies.
At the same time, Embraer is studying another very important issue: autonomous air traffic management, without the help of pilots or controllers.
Atech, a subsidiary of Embraer, is already working on this issue, and in November tests were carried out in Rio de Janeiro, in partnership with Flapper and Helisul, to include data. Other agreements with different companies around the world will feed the database to build an eVTOL management network.
Meanwhile, another team is focusing on creating a low-noise, zero-carbon aircraft. Partnerships with EDP Brasil and WEG were created to improve the aircraft's engines and batteries.
Recent and total orders
In the last week Eve signed over 90 order intentions for her eVTOL during the Singapore Airshow, with two Australian companies.
In recent months, the Embraer/Eve UAM was already attracting the attention of companies, which massively ordered the eVTOLs.
In less than a year, Embraer/Eve jumped from 200 eVTOL commitments to 1735 commitments or purchase intentions, according to information shared by Embraer with the AEROFLAP Portal.
That's a very significant potential for a small aircraft. In the future, with a larger portfolio and cargo options, Embraer may gain even more market share.
All of these orders, if completed, will add approximately $5,2 billion to Eve's cash flow. Serving this market of small electric eVTOLs, just the cutting edge of carbon-free aircraft technology, is equivalent to selling around 75 E-Jet E2 aircraft.
Among so many companies in this sector, Embraer expects Eve to have a 15% share in the eVTOL business in the future. The market as a whole is expected to reach $31 billion by 2031.
Expected performance of eVTOL
As it is still a project under development, we cannot say about the expected performance of an eVTOL. The only data is the initial capacity for 4 engers at the start of operations, in 2026.
The maximum speed of most competitors is between 160 km/h and 250 km/h, with range ranging from 80 to 200 km in continuous flight. Eve expects the eVTOL to be able to fly at 180 km/h while carrying engers on board, however, range is still under development and relies on batteries.
The flight altitude of most eVTOLs being developed ranges from 400 to 800 meters above the ground, enough to fly over most buildings.
We emphasize that the development of the project, until 2026, may change the number of engines, propellers and batteries that make up the eVTOL. For now, the engineers are working with 10 engines in total, 8 of which are to maintain the ability to fly vertically and without wings.
Is it the future of flying and Embraer?
In February 2021 we talked to Paul Malick, CEO of Flapper, Embraer's partner to develop Eve's eVTOL. Paul explained that the very low cost of keeping these planes flying is the big bet for the rapid electrification of small-scale aviation.
No video below Paul Malicki explains that the cost can be reduced by up to 50% compared to current combustion aircraft.
In addition, and just like in cars, the maintenance cost is reduced by the smaller amount of parts in the Powerplant Group.
Still inaccessible to most people, flying by helicopter can be popularized by removing the heavy cost of fuel and maintenance that currently exists.
Airbus and Boeing, for example, are betting on this market with their own concepts that are currently under development. Airbus has the CityAirbus, presented in mid-2016, while Boeing is developing a very different concept from Embraer, with wings and dozens of small electric motors.
https://www.facebook.com/watch/?v=462261997790389
Other smaller companies and literally startups are also betting on the concept and have already signed a few hundred purchase commitments, unlike Airbus and Boeing.
On the revenue side, Embraer expects Eve to have a profit of 25% on its annual billing. Revenue will mostly be composed of aircraft sales (55%), followed by services (26%) and aircraft operations (18%).
Embraer will have 82% of the business, considering the period after Zanite becomes a partner and with the IPO in 2022, so the manufacturer's profit can be great with the electric aircraft sector.
With data from EPBR.
