Electric regional aviation could unlock MIC’s energy, logistics ambitions
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.
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 The Philippine Star.
By end‑2025, only about ₱5.9 billion had been deployed into strategic assets (ports/power/mining).
This prompted 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
