Two hydrogen aviation startups have seen contrasting outcomes in recent weeks, with one facing liquidation and the other securing a significant order from American Airlines. While Universal Hydrogen, a hydrogen-powered flight startup, announced its failure to secure sufficient funding and explore potential strategic exits, ZeroAvia, a startup specializing in hydrogen-electric engines for commercial aircraft, received a conditional order for 100 engines from American Airlines.
Universal Hydrogen’s Chair and CEO, Mark Cousin, expressed disappointment as the company disclosed its decision to cease operations due to the inability to secure additional equity or debt financing. Furthermore, the company faced challenges in finding a suitable offer to sustain its business. This setback demonstrates the hurdles faced by startups in the aviation industry, even with innovative solutions such as hydrogen-powered flights.
In contrast, ZeroAvia has experienced a positive turn of events as it secured a conditional order for 100 hydrogen-electric engines from American Airlines. This development comes in the wake of significant funding that ZeroAvia received in 2022, including investments from American Airlines, Alaska Airlines, and United. Additionally, the startup garnered support from Japanese-based investors, indicating a growing interest and confidence in its hydrogen-electric engine technology.
The divergent outcomes of these two startups highlight the unpredictable nature of the aviation industry and the challenges faced by emerging players. While Universal Hydrogen’s failure underscores the difficulty in securing necessary funding, ZeroAvia’s success demonstrates the potential and growing interest in hydrogen-electric engines for commercial aircraft. Despite the setbacks faced by Universal Hydrogen, the industry continues to see progress and innovation in the pursuit of sustainable aviation solutions.