Universal Hydrogen, a startup producing hydrogen fuel tanks for aircraft, received a strategic investment from American Airlines. The financial details of the transaction were undisclosed. This brings the company’s total funding to an excess of USD 82.5 million. 

Universal Hydrogen expects to start hydrogen deliveries for regional aircraft by 2025. The company also plans to extend its hydrogen offering to larger, single-aisle aircraft. This involves using hydrogen fuel as an auxiliary power source in the late 2020s and as a primary fuel source towards the mid-2030s. 

Founded in 2020, the California-based startup intends to decarbonize aviation through the adoption of hydrogen as a universal fuel by leveraging its proprietary modular capsule technology. The company has an R&D center in Toulouse, France, which facilitates the production of capsules for gaseous hydrogen and liquid hydrogen, and a flight test center in Moses Lake, Washington. The company anticipates entry into commercial services by 2025.

Analyst QuickTake: In August 2022, American Airlines made a strategic investment in ZeroAvia , a hydrogen-based aviation solutions developer, where the financial details of the transaction were kept undisclosed. This earmarks American Airlines as the first US airline to embark on two direct strategic investments focusing on hydrogen-electric propulsion technology and hydrogen distribution and logistics network. American Airlines joins Airbus Ventures, GE Aviation, and Toyota Ventures, as well as several other hydrogen producers and aircraft lessors, as strategic investors in Universal Hydrogen.