Airbus and MTU deepen hydrogen ambitions with planned fuel cell engine joint venture

Airbus and German manufacturer MTU Aero Engines have announced plans to establish a joint venture dedicated to developing and commercialising fully electric hydrogen fuel cell propulsion systems, marking a significant step in Europe's efforts to advance zero-emission aviation technologies.

Image: MTU - From left: Dr Stefan Weber, SVP Engineering and Technology (MTU), Marie-Eve Rigollet, SVP Propulsion System Procurement (Airbus), Claudia Gaab, SVP Corporate Development and Strategy (MTU), and Bruno Fichefeux, Head of Future Programmes (Airbus) 

The proposed company, which is expected to begin operations in 2027 subject to regulatory approvals and employee consultation processes, will combine the partners' expertise in hydrogen propulsion, electric power systems, testing, certification and industrialisation.

The joint venture represents a strategic shift for Airbus, which has traditionally relied on independent engine manufacturers for propulsion systems. The Financial Times reported that Airbus is expected to hold a majority stake in the new venture, with MTU holding the remainder, although the companies have not publicly confirmed ownership details.

According to Airbus, the joint venture will focus on the design, development, testing, certification and commercialisation of fully electric hydrogen fuel cell engines. The partners said the aim is to accelerate the transition from research programmes to certifiable propulsion systems for next-generation commercial zero-emission aircraft.

The announcement builds on a Memorandum of Understanding signed by Airbus and MTU at the 2025 Paris Air Show, which established a roadmap for jointly developing hydrogen fuel cell propulsion technology. That agreement included collaborative research, alignment of technology roadmaps and preparations for a dedicated development organisation.

Hydrogen fuel cells generate electricity through an electrochemical reaction between hydrogen and oxygen, producing only water vapour at the point of use. The electricity generated powers electric motors rather than conventional gas turbines, making the technology one of several approaches being explored by the aviation industry to reduce carbon emissions.

Airbus said the joint venture represents the next stage of its ZEROe programme, which has increasingly focused on hydrogen fuel cell propulsion following a review of its long-term hydrogen aircraft strategy. The manufacturer has said fuel cell technology offers one of the most promising pathways for achieving zero-emission commercial aviation, although significant technical, regulatory and infrastructure challenges remain before the technology can enter airline service.

The partnership comes as aircraft manufacturers, engine developers and governments continue to invest in multiple decarbonisation pathways, including sustainable aviation fuels, hybrid-electric propulsion, open-fan engine concepts and hydrogen-powered aircraft. While hydrogen fuel cell technology remains at an early stage of commercial development, it is regarded as a potentially viable approach for regional and short-haul routes in the coming decades.