In a dramatic turn of events, Universal Hydrogen, the pioneering company that aimed to revolutionize air travel with hydrogen-powered flights, has shut down. The company garnered significant attention for its partially hydrogen-powered flight out of Moses Lake in March last year, but it has burned through its $100 million in investor funding and failed to secure additional financing.
A Promising Start
Paul Eremenko, a visionary in clean energy and former Chief Technology Officer at Airbus, founded Universal Hydrogen. Eremenko’s charisma and technical expertise helped the company attract significant startup funding from Silicon Valley investors. The company’s mission was ambitious: to replace fossil-fuel-powered flights with sustainable, emissions-free hydrogen technology.
Washington State Governor Jay Inslee hailed the achievement of a first flight at Moses Lake as a breakthrough in clean energy. In March, Fast Company included Universal Hydrogen in its list of “Most Innovative Companies of 2024.” Trade magazine Aviation Week reported last month that the company was preparing for ten new flight tests.
Financial Struggles and Barriers
Despite these achievements, the financial reality for Universal Hydrogen was grim. In a letter to shareholders, Chairman and CEO Mark Cousin announced that the board had decided to wind up the company after failing to secure further financing from new investors. Efforts to raise equity or debt financing, as well as attempts to sell the business, were unsuccessful.
“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.
The company approached existing investors for a rights offering but found insufficient interest. Documents viewed by The Seattle Times reveal that negotiations for $20 million in funding from a Saudi investment fund fell through. In a last-ditch effort, Universal Hydrogen attempted to merge with Florida-based Silver Airways, a regional airline struggling with financial losses and debt. The merger did not materialize, leading to the decision to liquidate.
Challenges in Hydrogen-Powered Aviation
Universal Hydrogen faced numerous challenges in its quest to revolutionize aviation. The Los Angeles-based company had to engineer a hydrogen-powered propulsion system and develop a new logistics infrastructure to deliver hydrogen fuel at airports. Hydrogen fuel, which takes up more space than jet fuel, poses significant engineering challenges, including reducing passenger space.
A critical hurdle was securing a reliable supply of “green hydrogen,” produced using renewable energy sources such as wind or solar. Most hydrogen is made from natural gas, emitting significant carbon dioxide. Scaling up green hydrogen production requires substantial investments, which have yet to materialize.
Technical Achievements
Despite these barriers, Universal Hydrogen achieved several technical milestones. The company designed a hydrogen-powered propulsion system that could be retrofitted on regional airplanes and developed an ecosystem for delivering hydrogen fuel to airports. In March 2023, Universal Hydrogen demonstrated its technology with a pioneering flight of a retrofitted De Havilland Canada Dash 8-300 turboprop at Moses Lake. One engine was powered by a hydrogen fuel cell, while the other used regular jet fuel.
The company moved its flight operations to Mojave, California, and continued its work in Toulouse, France, retrofitting a larger regional airplane, the ATR 72. The goal was to develop removable modules of liquid hydrogen that could be transported by truck to airports worldwide, creating the necessary infrastructure for hydrogen-powered aviation.
The End of the Journey
Cousin’s letter to shareholders indicated that the French unit of the company would also be liquidated. Eremenko, who left the company in April, expressed pride in the team’s accomplishments despite the financial failure.
“I am proud that while Universal fell short, it accomplished extraordinary technical feats on an insanely aggressive timeline,” Eremenko said. “I hope our efforts form the foundation for the future of carbon-free flight.”
The shutdown of Universal Hydrogen underscores the significant challenges facing the development of hydrogen-powered aviation. While the company achieved notable technical successes, financial and logistical barriers proved insurmountable. Universal Hydrogen’s story serves as a cautionary tale of the complexities involved in transitioning to sustainable aviation and highlights the need for continued innovation and investment in green technologies.
