American Airlines has made a strategic equity investment in H2-fuel developer Universal Hydrogen.
The investment will support Universal Hydrogen’s aim to develop a green hydrogen distribution and logistics network for aviation.
For American Airlines, the investment will support its science-based targets to reduce greenhouse gas (GHG) emissions by 2035 and its ultimate aim for net zero emissions by 2050. The investment makes American Airlines the first U.S. airline to invest directly in the development of both hydrogen-electric propulsion technology and hydrogen distribution logistics.
Other strategic investors in Universal Hydrogen are Airbus Ventures, GE Aviation and Toyota Ventures, as well as several major hydrogen producers and aircraft lessors.
“Together with our investors, we are putting together the end-to-end value chain to make hydrogen aviation a near-term commercial reality,” said Paul Eremenko, co-founder and CEO of Universal Hydrogen. “This move by American is a strong signal that customers want a true zero-emissions solution for passenger aviation and are willing to back tangible, pragmatic steps to get there quickly.”
Universal Hydrogen’s fuel distribution network uses modular hydrogen capsules, which can be handled like cargo. This means there is no need for fueling infrastructure at airports.
“This technology has the potential to be a game-changer on the industry’s path to zero-emission flight,” said American’s Chief Financial Officer Derek Kerr. “As the world’s largest airline, American has a responsibility to exercise leadership in making aviation sustainable. Our investment in Universal Hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for our industry.”
The firm expects to begin hydrogen deliveries for regional aircraft in 2025 and plans for expansion of services to larger, single-aisle aircraft. Initially, it will be supplied for auxiliary power in the late 2020s and later it will be provided as primary fuel by the mid-2030s.
