Why the Philippines’ Maharlika Fund should look at Heart Aerospace

The Philippines’ Maharlika Investment Corporation (MIC) is positioning electric aviation as a potential strategic investment area as it seeks projects that strengthen national resilience and generate at least a 10% economic internal rate of return (EIRR).

MIC is mandated to deploy "counter-cyclical capital" into sectors considered critical to the economy, including energy, logistics, agriculture and mining.

Heart Aerospace’s ES-30 hybrid and all-electric regional aircraft programme align with several of those priorities.

These priorities include: transport connectivity, electrification and industrial development.

Those boxes would be ticked at the same time while giving the Philippines exposure to a rapidly-developing global market for electric regional aviation, according to Aviation.com.

The ES-30 is designed to serve regional routes with electric propulsion for shorter flights — and hybrid-electric capability for longer sectors — potentially reducing fuel consumption and emissions while improving connectivity between smaller airports.

Here's an investment case grounded in the physics and economics of electric flight and the Philippines’ archipelagic reality.

Maharlika Investment Corporation (MIC)

MIC runs the Maharlika Investment Fund, the Philippines’ sovereign wealth fund, with an authorised capital of ₱500 billion, looking at long-term growth. 

Its total assets stand at approximately ₱129.48 billion, backed by ₱129.2 billion in equity and an initial paid-up capital of ₱75 billion provided by state-run institutions and the national government (from Landbank, DBP and government dividends, with roughly ₱68 billion described as deployable in 2026 after some releases), as per Philippine Star.

By end‑2025, only about ₱5.9 billion had been deployed into strategic assets (ports/power/mining), prompting a 2026 target to deploy around ₱25 billion and a stated intent to do “3–4 deals” in the ~US$150 million range in energy, agriculture and mining, Rappler reported.

MIC’s scorecard requires all financially closed investments to hit at least 10% EIRR and explicitly factors socioeconomic impact (jobs, infrastructure, sustainability)

Leadership has emphasised “national resilience” projects, including off‑grid electrification, grid assets (e.g., NGCP stake via Synergy Grid), and logistics — framing MIC as a catalyst rather than a passive portfolio fund.

Heart Aerospace (ES‑30 programme)

Sweden‑founded, US‑based developer of the ES‑30, a 30‑seat hybrid‑electric regional airliner designed for short‑haul routes with ~200 km all‑electric range and up to ~800 km in hybrid mode; type certification is targeted for 2031.

Technology milestone: On Aug. 12, 2026, Heart flew its full‑scale X1 demonstrator — the world’s largest battery‑electric aircraft to date (>11 tonnes, >1 MW electric propulsion) — for 27 minutes, validating megawatt‑class systems and manufacturing processes for the ES‑30.

Funding and investors

Disclosed fundraising totals roughly US$184 million across multiple rounds, including a US$107 million Series B in 2024 and a 2025 extension; backers include Breakthrough Energy Ventures, United Airlines Ventures, Air Canada, Mesa Air Group, and EQT Ventures.

Commercial traction

Heart reports a US$9.4 billion order/commitment book from carriers including United Airlines, Air Canada, and JSX, though these are commitments/LOIs rather than booked revenue, as per The Next Web.

Economic promise

Heart claims >40% lower operating costs versus legacy regional aircraft via cheaper energy, simpler electric maintenance, and higher uptime — advantages expected to widen with battery improvements and carbon pricing.

Why the future of aviation (not just roads/rail) is electric

Electrification is already dominant where physics and economics align: the world’s fastest trains have run on electrons for decades, and now the same logic is moving into short‑haul air transport. 

The case rests on three facts:

Physics favours electrons on short sectors

Energy density gap is real but manageable regionally: Jet fuel still carries ~19–27× more usable energy per kilogram than today’s Li‑ion batteries, which constrains long‑haul electric flight. However, for missions under ~200–350 km (with reserves), current and near‑term batteries are sufficient—exactly the niche Heart targets.

Efficiency advantage: Electric motors and powertrains are far more efficient than turboprops/jets, translating into dramatically lower energy use per seat‑km on short routes.

Lower variable costs, better route viability

• Fuel/energy cost delta: Analyses show electric propulsion can cut energy cost per seat‑mile to roughly $0.02–0.04 versus $0.08–0.12 for traditional regional aircraft — a 60–80% reduction in the largest variable cost line.

• Maintenance, uptime: Fewer moving parts and integrated electronics reduce maintenance burden and increase aircraft utilization, further lowering direct operating costs. 

• Carbon, noise externalities: As emissions fees/taxes expand and noise restrictions tighten, electric/hybrid‑electric aircraft gain additional cost and slot advantages over legacy types. 

Systemic fit for archipelagic states

• High‑frequency, short hops: The Philippines’ inter‑island network is dominated by short sectors where 200-km to 800-km all‑electric range can cover many routes today, with hybrid extension for longer legs.

• Island hopping: The Philippines has 7,641 islands spread over a vast tropical archipelago, with 7 times the size of the Netherlands in terms of land area. Connecting the islands through next-gen aviation is the logical way to go given proven electrified transport tech on land and rail.

• Grid‑leveraged decarbonisation: Unlike road EVs that compete for scarce urban charging, airport electrification can be planned with dedicated microgrids/renewables — aligning with MIC’s off‑grid electrification focus. 

Investment case: Why MIC should consider Heart Aerospace (or similar “disruptors”)

Here's why an investment in Health aligns with MIC’s Strategic pillars:

• Energy: Electric aviation is a new, large‑scale electricity load that can be paired with renewables and storage — directly supporting MIC’s energy and off‑grid electrification agenda.

• Logistics/connectivity: Faster, cheaper short‑haul air links improve supply chains, tourism, and emergency response across islands — core “national resilience” outcomes MIC is tasked to catalyse.

• Industrial policy: Early anchor investment or procurement support can position the Philippines as a regional hub for electric regional operations, MRO, and potentially component manufacturing.

Financial rationale under MIC’s 10% EIRR lens

• Operating cost arbitrage: If Heart’s >40% operating cost reduction holds, airlines can profitably serve thinner routes previously uneconomic — expanding the addressable market and stabilizing cash flows for operators using ES‑30s, that would fit inter-island travel across the archipelago.

• Fuel price hedge: With jet fuel prices volatile (e.g., +63% YoY in some 2026 readings), electric/hybrid fleets reduce exposure to oil shocks — an attractive macro hedge for a sovereign fund.

• Option value on deep tech: MIC’s relatively small ticket sizes (~US$150 million) suit structured exposure (e.g., convertible notes, co‑investment with development finance) that captures upside if ES‑30 certifies and scales, while limiting downside via covenants and milestone tranches. 

Precedent and market momentum

• Airline commitments matter: United, Air Canada, and JSX have put development money and large commitment books behind ES‑30, de‑risking demand relative to pure startups. 

• Regulatory progress: FAA special airworthiness certification for X1 and an active flight‑test campaign signal credible pathfinding toward 2031 entry into service.

How this could be structured for MIC

Given MIC’s risk/return framework and sector focus, practical structures may include:

• Co‑investment in a special purpose vehicle (SPV) that finances ES‑30 deliveries for Philippine carriers, with MIC taking a preferred/equity tranche and securing local content/MRO (maintenance-repair-overhaul) commitments. 

• Convertible or milestone‑based debt tied to certification and delivery milestones, aligning with MIC’s 10% EIRR requirement while preserving downside protection.

• Infrastructure tie‑in: Pair any aviation exposure with investments in airport microgrids, fast chargers, and renewable purchase power agreements (PPAs) — amplifying energy‑sector returns and national resilience. 

Critical threshold 

Heart Aerospace has crossed a critical threshold by flying the largest battery‑electric aircraft to date, backed by major airline commitments and a credible 2031 certification path. 

For MIC — an under‑deployed sovereign fund explicitly seeking catalytic energy and logistics projects with ≥10% EIRR — a structured position in electric regional aviation “disruptors” like Heart offers a rare combination: strategic fit, macro hedging against fuel volatility, and optionality on a transport paradigm shift that, like high‑speed rail, runs best on electrons.

The potential investment case, therefore, extends beyond aviation.

It could place Maharlika at the intersection of clean energy, regional mobility, infrastructure development and industrial policy as the global aviation industry moves toward lower-emission technologies.