Universal Hydrogen, the innovative startup that successfully flew a partially hydrogen-powered airplane in March 2023, has exhausted its $100 million in funding and is shutting down operations. The company was at the forefront of developing sustainable, zero-emission aviation technology by replacing jet fuel with hydrogen to power aircraft engines.
Universal Hydrogen’s Achievements
- Conducted a landmark test flight at Moses Lake, Washington, in March 2023 using a retrofitted De Havilland Canada Dash 8-300 turboprop
- Recognized as one of the “Most Innovative Companies of 2024” by Fast Company magazine
- Prepared for 10 new flight tests to further advance its propulsion system technology
Challenges in Securing Additional Funding
Universal Hydrogen faced challenges in raising additional capital due to:
- Unsuccessful efforts to secure new equity or debt financing
- Insufficient interest from existing investors for a rights offering
- Concerns about higher interest rates, recession fears, and potential impact of the 2024 U.S. election on green energy subsidies
Attempts to Save the Company
In a final effort to prevent shutdown, Universal Hydrogen:
- Attempted to merge with regional airline Silver Airways to retrofit planes with hydrogen power
- Planned to liquidate its French unit working on developing removable liquid hydrogen modules
Challenges in Hydrogen-Powered Aviation
Universal Hydrogen faced significant challenges in pioneering hydrogen-powered flight:
- Developing both a hydrogen propulsion system and logistics infrastructure for fuel delivery
- Overcoming space constraints of storing hydrogen fuel onboard aircraft
- Dependence on limited supply of “green hydrogen” produced using renewable energy
Legacy and Future of Hydrogen-Powered Flight
- Founder Paul Eremenko hopes Universal’s technical achievements “form the foundation for the future of carbon-free flight”
- Airbus continues developing a hydrogen-powered plane for the 2030s
- Startup ZeroAvia is still working on retrofitting planes with hydrogen propulsion systems
The shutdown of Universal Hydrogen is a setback in the push for sustainable aviation. However, the company’s pioneering efforts have advanced hydrogen-powered flight technology and highlighted both the potential and challenges in this emerging field.