Airbus and German engine manufacturer MTU Aero Engines are set to establish a joint venture dedicated to developing hydrogen fuel cell propulsion systems, marking one of the most significant industrial commitments yet to hydrogen-powered commercial aviation.
The two companies announced plans to create a new business focused on designing, testing, certifying and ultimately commercialising fully electric hydrogen fuel cell engines for future aircraft. The move builds on a Memorandum of Understanding signed at the Paris Air Show in 2025 and is expected to see the new venture begin operations in 2027, subject to regulatory approval.
Rather than continuing development independently, Airbus and MTU say the dedicated company will combine engineering expertise, manufacturing capabilities and research resources to accelerate the development of what could become the aviation industry’s first commercially viable hydrogen fuel cell propulsion system.
Unlike conventional jet engines, hydrogen fuel cell systems generate electricity through a chemical reaction between hydrogen and oxygen, producing only water as a by-product. That electricity is then used to power electric motors driving the aircraft’s propellers or fans, offering the potential for dramatically reduced carbon emissions during flight.
Bruno Fichefeux, Head of Future Programmes at Airbus, said the joint venture represented the next stage in the companies’ long-term collaboration.
“Our planned joint venture is the next logical step in our shared vision of a hydrogen-based propulsion concept for aviation.
“By pooling our respective technology and expertise into a dedicated entity, we are establishing a European powerhouse capable of transforming advanced research into industrialised, certifiable electric propulsion systems. This new company will help secure strategic sovereignty in the next generation of aviation technologies while strengthening our ability to achieve the long-term ZEROe ambition.”
The project forms part of Airbus’ wider ZEROe programme, which is exploring several concepts for hydrogen-powered aircraft as the manufacturer searches for technologies capable of delivering net-zero aviation over the coming decades.
For MTU Aero Engines, the agreement represents an opportunity to build on years of fuel cell research while expanding beyond its traditional role as an aircraft engine manufacturer.
Dr Stefan Weber, Senior Vice President Engineering and Technology at MTU Aero Engines, said: “Our ambitious goal is to pave the way for a newly developed, safe, reliable and economical propulsion system that will contribute to climate-neutral aviation.
“This project is a crucial milestone on our path to the first hydrogen-powered engine – and this is true European technology leadership. To that end, we want to create a company that covers the entire life cycle of fuel cell powertrains – from development and testing through certification to commercialisation.”
The new company will draw upon Airbus’ expertise in commercial aircraft design, liquid hydrogen technologies and fuel cell propulsion, while MTU will contribute its experience in engine design, integration, certification and maintenance, alongside several years of fuel cell development work.
Building the foundations for hydrogen aviation
While the propulsion system itself remains under development, Airbus and MTU acknowledged that widespread hydrogen-powered flying will depend on far more than engine technology alone.
Aviation will require a new ecosystem of hydrogen production, airport infrastructure, storage and refuelling capabilities, alongside an evolving certification and regulatory framework before hydrogen aircraft can enter widespread commercial service.
Both companies said they will continue working with industry partners and regulators to help establish the conditions necessary for hydrogen aviation to become commercially viable.
Although significant technical and infrastructure challenges remain, the creation of a dedicated joint venture signals growing confidence that hydrogen fuel cell propulsion could become one of the key technologies shaping the next generation of sustainable commercial aircraft.