Universal Hydrogen closes after failing to secure funding

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By Sky Industry News

Jul 1, 2024

Universal Hydrogen, a U.S. startup, has announced its closure after failing to secure new investment. The company aimed to convert regional airliners to operate on liquid hydrogen but was unable to obtain the necessary capital. News of the company's closure initially appeared in the Seattle Times before being confirmed by Chairman and CEO Mark Cousin in a public statement.

“We confirm the unfortunate news that Universal Hydrogen Co. has made the difficult decision to wind up the company,” Cousin stated. “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.”

The Seattle Times reported that Cousin informed shareholders on June 27 about the situation, mentioning attempts to secure $20 million from Saudi Arabian investors and a potential merger with Silver Airways based in Florida.

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In February, Universal Hydrogen conducted a ground test run using its fuel cell powertrain with a proprietary liquid hydrogen module. By May, plans were underway for flight testing following earlier tests involving a De Havilland Dash 8 aircraft powered partially by hydrogen.

Universal Hydrogen aimed to obtain supplemental type certificates for converting Dash 8 and ATR 72 turboprop aircraft to operate over sectors of 500 nm with reserves for diversions. Their goal was commercial service by 2026.

Japan Airlines had shown interest in converting part of its fleet through a partnership agreement with Universal Hydrogen and H2Fly. Provisional sales agreements were also secured with Connect Airlines and Avmax Aircraft Leasing.

Investors included American Airlines, Airbus Ventures, GE Aviation, Toyota Ventures, and JetBlue Ventures. Paul Eremenko founded Universal Hydrogen in early 2020 but stepped down as CEO in April according to the Seattle Times.

Meanwhile, ZeroAvia continues developing hydrogen-electric propulsion systems for regional aircraft. The company opened a manufacturing facility in Everett, Washington and raised $116 million through Series C funding led by UK Infrastructure Bank among others.

ZeroAvia praised Universal Hydrogen's "vision and technical achievements" while highlighting its own financial backing from investors based on its strategic approach involving sequential development starting with smaller aircraft models.

Hydroplane is another innovator developing hydrogen-powered light aircraft under former NASA scientist Anita Sengupta’s leadership. In Europe, Swiss-based Sirius Aviation and Beyond Aero are working on hydrogen-powered business jets targeting ranges between 800-1,000 nm for three-to-eight passengers.