Global major aerospace group Airbus and German engine manufacturer MTU Aero Engines have announced the creation of a joint venture (JV) focused on the development and commercialisation of a fully electric hydrogen fuel cell engine. This is an outcome of the memorandum of understanding signed between the two companies at the 2025 Paris Air Show. The agreement is non-binding and is subject to the standard European and national regulatory approvals and social processes. The JV is expected to commence operations next year.

Hydrogen has the potential to greatly reduce aviation’s climate impact over the long term. It could transform aviation in a manner analogous to the impact of electric vehicles on road transport. In aviation, hydrogen fuel cells would produce electricity which would power electric motors that would drive aircraft propellors.

“Our planned [JV] is the next logical step in our shared vision of a hydrogen-based propulsion concept for aviation,” explained Airbus head of future programmes Bruno Fichefeux. “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 JV will be a very agile organisation, intended to push the development of the technology for, and the design, testing and certification of, a hydrogen fuel cell-based aviation propulsion system that would be revolutionary. The JV will be supported by engineering and manufacturing teams from both Airbus and MTU Aero, across all competences.

“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,” elucidated MTU Aero Engines senior VP engineering and technology Dr Stefan Weber. “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 objective of the JV is to develop and provide the first hydrogen fuel cell propulsion system for commercial aircraft. It is also intended to be a leader in this sphere of technology. It will draw on Airbus’ extensive knowledge of commercial aircraft programmes, as well as its in-house expertise in fuel cell propulsion and liquid hydrogen, and on MTU Aero’s long-running fuel cell technology development as well as its expertise in engine design, integration, validation, certification and maintenance.

In addition, separately to this engine programme, the two parent groups will continue to promote the development of a wider hydrogen aviation economy and the related regulatory framework. These are essential enablers of large-scale hydrogen-powered flight.