Universal Hydrogen has abandoned its efforts to convert regional airliners to run on liquid hydrogen, with the U.S. startup acknowledging over the weekend that it is closing the business. News of the company’s closure first broke in the Seattle Times on Saturday and then on Sunday its chairman and CEO, Mark Cousin, issued a public statement confirming the report.
“We confirm the unfortunate news that Universal Hydrogen Co. has made the difficult decision to wind up the company,” Cousin said in a written statement. “While we have been pursuing new capital for some time and evaluating various strategic options, we have been unsuccessful in closing any new investment and therefore our board has made this decision.”
According to the Seattle Times, Cousin wrote to shareholders on June 27 to explain the situation. The paper reported that it had seen documents relating to efforts to secure a $20 million investment from Saudi Arabian investors and another possible deal to merge with Florida-based Silver Airways.
In February, Universal Hydrogen reported that it had conducted a first ground test run with its megawatt-class fuel cell powertrain using its proprietary liquid hydrogen module to supply the fuel. In May, the company was reportedly preparing to start a program of flight testing with this equipment to build on experience gained when it flew a De Havilland Dash 8 partially powered by hydrogen from Moses Lake, Washington.
Universal Hydrogen was working to secure supplemental type certificates to convert the 70-seat Dash 8 and ATR 72 turboprop twins to be able to operate sectors of 500 nm with reserves for flight diversions. Its goal was to bring the first aircraft into commercial service in 2026.
In November, Japan Airlines became the latest carrier to show interest in converting part of its fleet to hydrogen propulsion when it signed a partnership agreement with Universal Hydrogen and another propulsion system innovator H2Fly. Universal Hydrogen had already secured provisional sales agreements with U.S. regional airline Connect Airlines for 75 converted ATR 72-600s and with Avmax Aircraft Leasing for 20 aircraft.
Investors in Universal Hydrogen include American Airlines, Airbus Ventures, GE Aviation, Toyota Ventures, and JetBlue Ventures. The company was founded in early 2020 by former Airbus chief technology officer Paul Eremenko who, according to the Seattle Times, stepped down as CEO in April.
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Meanwhile, ZeroAvia is continuing its work to convert regional aircraft to use its hydrogen-electric propulsion system. In April, it opened a manufacturing facility in Everett, Washington, as it seeks approval for its 600-kilowatt ZA600 powertrain for 20-seaters and the two-megawatt ZA2000 engine for 90-seaters.
In November 2023, the company raised a further $116 million in funding in fresh capital through a Series C funding round. The UK Infrastructure Bank was the lead investor, alongside co-leads Airbus, Barclays Sustainable Impact Capital, and Saudi Arabia’s Neom Investment fund. It has sales agreements with Monte Aircraft Leasing and several airlines.
Commending the "vision and technical achievements" of Universal Hydrogen, ZeroAvia said it remains committed to bringing its propulsion systems to market. "We can't comment on other companies' finances or strategies, but ZeroAvia is well capitalized with strong support from investors," the company said. "This support is based on our sequential approach—starting with 10- to 20-seat aircraft—deep vertical integration leading to technical and IP leadership and high-performing components with distinct markets, commercial traction with 2,000-plus engine orders-—including four from the world's 10 largest airlines—and sustained progress with regulators on certification."
California-based Hydroplane is another hydrogen propulsion innovator. Led by former NASA scientist Anita Sengupta, the startup is developing the Protium light aircraft, which would be entirely fueled by hydrogen.
In Europe, Swiss-based Sirius Aviation and Beyond Aero are working on plans for hydrogen-powered business aircraft. The companies are targeting ranges between 800 and 1,000 nm, carrying between three and eight passengers.