As developers of electric and hybrid-electric aircraft experience growing pains, Airbus is doubling down on its ambition to produce a hydrogen-powered commercial aircraft.
The European manufacturer on Tuesday revealed its plans to form a joint venture with Germany’s MTU Aero Engines, which per its website claims its engine technology is found on one-third of the world’s commercial aircraft. The new company will aim to develop a fully electric, hydrogen fuel cell-powered engine, with the objective of providing the first such system for a commercial aircraft.
The nonbinding agreement follows a memorandum of understanding (MOU) the partners signed at the 2025 Paris Air Show. Airbus said it expects the joint venture to begin operations in 2027.
The manufacturer said combining forces with MTU will create a “dedicated and highly agile” organization that is capable of accelerating the development, test, design, and certification of the fuel cell system. Bruno Fichefeux, head of future programs at Airbus, in a statement called it the “next logical step” toward the partners’ shared vision of hydrogen-based propulsion.
Per a news release, Airbus believes hydrogen could bring aviation’s environmental impact more in line with that of electric ground vehicles. The only byproduct of the reaction between hydrogen and oxygen that occurs in the fuel cell is water vapor, which the manufacturer said will eliminate in-flight emissions.
“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,” Fichefeux said.
Stefan Weber, senior vice president of engineering and technology for MTU, added that “we want to create a company that covers the entire life cycle of fuel cell powertrains—from development and testing through certification to commercialisation.”
Regarding hydrogen, Airbus stands in stark contrast to its largest rival, Boeing. The American manufacturer has acknowledged hydrogen’s potential as an alternative fuel source. But it has neither committed to incorporate the technology into its aircraft nor unveiled a hydrogen-powered concept.
The agreement to form a hydrogen engine joint venture comes amid broader struggles for developers of sustainable propulsion technology. In the past few years, many have either folded, scaled back their ambitions, or been acquired by larger players.
Airbus’ Hydrogen Vision
Airbus is king of the airframe, having led 2025 in commercial aircraft deliveries with 793, beating Boeing’s 600. With MTU, it aims to lead the way in next-generation propulsion.
The German company claims its engine technology powers one-third of the world’s commercial aircraft, from corporate jets to widebody passenger airliners. It is also a primary industrial partner of the German Armed Forces, contributing to the engine for a next-generation European fighter jet.
MTU does not build entire engines. Rather, it produces specialized components such as compressors and turbines in partnership with manufacturers. The firm also offers maintenance, repair, and overhaul.
MTU’s portfolio covers over 30 engine types, including the Pratt & Whitney Geared Turbofan (GTF) family that powers the A320neo. It also contributes to General Electric’s CF6, which powers the A300 and Boeing 747, and GE9X, the intended engine for Boeing’s long-haul 777X. Other projects include the NGFE, developed in partnership with Safran Aircraft Engines for a sixth-generation fighter, and the EJ200 engine for the Eurofighter Typhoon.
MTU is also developing what it has dubbed the “Flying Fuel Cell.” Per the company’s website, the device is fully electric and uses a hydrogen fuel cell to power an electric motor, which drives the propeller using a gearbox.
It is unclear whether the Flying Fuel Cell is intended to power the Airbus-MTU concept. But Airbus on Tuesday shared several updates to the program, including that MTU has “nailed down” the system’s design and begun building a demonstrator. Airbus said MTU put its first test cell into operation this year and conducted the first test of the electric motor that will power it.
Airbus in February 2025 reportedly scrapped its original 2035 target for flying a hydrogen-powered airliner. The aircraft manufacturer had been exploring four hydrogen-based “ZeroE” concepts since 2020. But in March 2025, it pivoted to focus solely on the hydrogen fuel cell architecture, finding it to be the most viable after fuel cell prototype and powertrain testing.
Airbus shared a concept that features four electric propulsion engines, each powered by an independent fuel cell stack. It said in March 2025 that it aims to begin integrated ground testing of the system as soon as 2027.
That same month, CEO Guillaume Faury cast doubt on the aviation industry’s ability to meet its net-zero by 2050 targets. Sustainable aviation fuels (SAF) are viewed by experts as a more impactful solution than hydrogen, and Airbus is targeting a 100 percent SAF capability for all of its aircraft and helicopters by 2030.
Since Airbus’ pivot to the hydrogen fuel cell concept, other developers of novel propulsion systems have struggled.
ZeroAvia—a leading developer of hydrogen-electric powertrains that could be retrofit on existing airframes—recently halved its workforce and delayed certification of its commercial ZA600 powertrain in favor of pursuing applications in autonomy and defense.
In May, Dutch hybrid-electric regional aircraft developer Maeve Aerospace—a partner of Delta Air Lines, Skywest, Japan Airlines, and others—went bankrupt. In June, Switzerland’s H55, the developer of an electric propulsion system that could be installed on multiple airframes, laid off about half of its workforce.