American Airlines has made a strategic equity investment in in Universal Hydrogen Co., a company building a green hydrogen distribution and logistics network for the aviation industry.
On Monday (October 10, 2022), American Airlines announced that they have made a strategic equity investment in Universal Hydrogen Co., as part of the carrier’s science-based targets to reduce greenhouse gas (GHG) emissions by 2035, and ultimately achieve net-zero emissions by 2050. Universal Hydrogen is building a green hydrogen distribution and logistics network for the aviation industry. The new investment marks the first time a U.S. airline has made direct investments in the development of both hydrogen-electric propulsion technology, as well as the future of hydrogen distribution logistics. As a strategic investor in Universal Hydrogen, American Airlines joins Airbus Ventures, GE Aviation and Toyota Ventures, as well as several major hydrogen producers and aircraft lessors.
In today’s announcement, American Airlines’ Chief Financial Officer, Derek Kerr, said,
“This technology has the potential to be a game-changer on the industry’s path to zero-emission flight. As the world’s largest airline, American has a responsibility to exercise leadership in making aviation sustainable. Our investment in Universal Hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for our industry.”
Also commenting on the new equity partnership, Universal Hydrogen’s Co-Founder and CEO, Paul Eremenko, said,
“Together with our investors, we are putting together the end-to-end value chain to make hydrogen aviation a near-term commercial reality. This move by American is a strong signal that customers want a true zero-emissions solution for passenger aviation and are willing to back tangible, pragmatic steps to get there quickly.”
Universal Hydrogen’s fuel distribution network uses modular hydrogen capsules that are handled like cargo, thereby eliminating new fueling infrastructure at airports, while speeding up fuel loading operations. The company anticipates starting hydrogen deliveries for regional aircraft in 2025, with plans to expand to larger single-aisle aircraft auxiliary power units (APUs) in the late-2020s, and as primary fuel by the mid-2030s. Universal Hydrogen is also working to certify a powertrain conversion kit to retrofit existing regional aircraft to fly on hydrogen.
American Airlines’ purpose is to “Care for People on Life’s Journey.” Shares in the American Airlines Group, Inc., trade on NASDAQ under the ticker symbol AAL and the company’s stock is included in the S&P 500.
Source: American Airlines