
06/07/2024
Leading hydrogen aircraft startup is suddenly grounded
Universal Hydrogen had raised $100 million from investors to build hydrogen-fuel-cell aircraft. Now it’s liquidating its business.
Around this time last year, Universal Hydrogen was flying high. The startup had successfully flown a 40-passenger aircraft using primarily hydrogen over a series of trips from central Washington down to Mojave, California. The test flights marked a significant — if still very early — milestone in the broader global quest to decarbonize air travel.
Universal Hydrogen apparently won’t get the chance to fly its plane again.
Last week, the Los Angeles–based company informed shareholders that Universal Hydrogen is shutting down, having burned through the $100 million it raised from investors, The Seattle Times first reported. The company’s backers included GE Aviation, American Airlines, and the venture capital arms of Airbus, JetBlue, and Toyota.
Mark Cousin, chair and CEO of Universal Hydrogen, said the four-year-old startup had failed to raise further financing from new investors to develop its technology. It couldn’t convince existing investors to fork over more cash either.
“We were unable to secure sufficient equity or debt financing to continue operations and similarly were unable to secure an actionable offer for a sale of the business or similar strategic exit transaction,” Cousin wrote in a June 27 letter to shareholders.
“It is our sincere hope that these efforts will live on as part of a future entity,” he added. (Cousin didn’t immediately return Canary Media’s request for comment.)
Universal Hydrogen was pursuing a two-pronged strategy for cleaning up passenger aircraft.
First, it retrofitted existing, oil-burning planes with hydrogen-fuel-cell systems and electric motors. Second, the company was designing hydrogen storage containers that could be transported from hydrogen production facilities by truck or train, then deposited directly into an aircraft’s body — no pipelines required.
“Our business model resolves the chicken-and-egg problem between hydrogen airplanes and hydrogen infrastructure by developing both in parallel, and with a uniquely low-cost approach,” Paul Eremenko, the company’s cofounder and former CEO, said in March 2023, following the startup’s first successful test flight near Moses Lake, Washington.
Globally, commercial air travel accounts for over 2 percent of energy-related carbon dioxide emissions every year, though flying may actually be responsible for 4 percent of total global warming when condensation trails and other non-CO2 factors are taken into account.