universal hydrogen raises $20.5m series a to help launch hydrogen aviation
Decarbonizing Aviation: Universal Hydrogen Secures $20.5 Million in Series A Funding
Significant progress towards reducing carbon emissions in the aviation sector was made this Earth Day. Universal Hydrogen, a Los Angeles-based company, announced the successful completion of a $20.5 million Series A funding round.
The startup is focused on creating hydrogen storage technologies and conversion systems designed for use in commercial aircraft.
A Critical Path to Emission Reduction
According to founder and CEO Paul Eremenko, hydrogen represents the only practical solution for aviation to meet the objectives set forth in the Paris Agreement and mitigate global warming. He stated in a TechCrunch interview that the company intends to establish a complete hydrogen supply chain for the aviation industry by the year 2025.
Investment Syndicate
Playground Global spearheaded the investment round. The investor group also included prominent entities such as Fortescue Future Industries, Coatue, Global Founders Capital, Plug Power, Airbus Ventures, Toyota AI Ventures, Sojitz Corporation, JetBlue Technology Ventures, and Future Shape.
Modular Hydrogen Capsules for Aircraft
Universal Hydrogen’s initial offering will consist of lightweight, modular capsules engineered to transport “green hydrogen.” This hydrogen will be produced utilizing renewable energy sources and delivered to aircraft equipped with hydrogen fuel cells.
These capsules will be manufactured in various sizes, accommodating a range of aircraft types, from vertical takeoff and landing (VTOL) air taxis to long-haul, single-aisle airplanes.
Interchangeability and Scalability
Eremenko envisions these capsules being interchangeable within specific aircraft classes, drawing a parallel to the functionality of contemporary consumer batteries.
Developing a Demonstration Aircraft
To stimulate demand for its capsule technology, Universal Hydrogen is concurrently developing a demonstration aircraft. This project involves modifying a 40-60 seat turboprop for regional flights spanning up to 700 miles.
The development is a collaborative effort with Plug Power, a seed investor providing hydrogen and fuel cells, and magniX, specializing in electric aircraft motors.
Timeline for Commercial Flights
The company anticipates operating the demonstration aircraft with paying passengers by 2025. The long-term goal is to offer retrofit kits to regional airlines, enabling them to convert their existing fleets.
De-risking Hydrogen Technology
Eremenko explained the strategy is to accumulate several years of operational experience to minimize risks associated with hydrogen certification and ensure passenger acceptance. This data will be crucial before Boeing and Airbus commit to building hydrogen-powered aircraft in the early 2030s.
He emphasized that the development of at least one hydrogen airplane by either Boeing or Airbus is essential for the aviation industry to achieve its climate targets.
Competition and Collaboration
Universal Hydrogen is not the sole player pursuing hydrogen-based aviation solutions. ZeroAvia, based in the U.K., is also developing regional fuel cell aircraft on an accelerated schedule. Furthermore, Airbus has been actively researching hydrogen aircraft concepts.
Attracting New Participants
Eremenko believes that establishing a streamlined and secure hydrogen logistics network will encourage further innovation and attract additional companies to the field.
A System-Based Approach
He likened the company’s approach to the Nespresso system, stating that creating the initial infrastructure is paramount, even if the company doesn’t intend to remain solely focused on aircraft manufacturing.
“We must develop the initial system; otherwise, our capsule technology will not gain traction. However, our core business lies in the capsules themselves, not the aircraft.”
Use of Funds
The Series A funding will be allocated to expanding the current team from 12 to approximately 40 employees and accelerating the development of the company’s core technologies.
A 30kW sub-scale demonstration of Universal Hydrogen’s aviation powertrain, integrating Plug Power’s hydrogen fuel cell and a magniX motor, has already been completed.