Seattle Times is reporting that Universal Hydrogen, a company dedicated to developing hydrogen-fueled aircraft systems, has ceased operations. The startup exhausted around $100 million (approximately $100 million) in investor capital before determining that no viable path forward existed. In a communication to its shareholders, the company outlined its dire financial situation.
“We were unable to secure sufficient equity or debt financing to continue operations and similarly were unable to secure an actionable offer for a sale of the business or similar strategic exit transaction,” the Times quoted the memo from CEO Mark Cousin.
Despite its financial troubles, Universal Hydrogen achieved significant technical milestones. The company successfully modified a Dash-8 aircraft, enabling one of its engines to operate on hydrogen while the other ran on conventional Jet A fuel. This aircraft took to the skies in 2023, marking a significant achievement in aviation history. However, the challenges were far from over. Hydrogen fuel, though clean-burning and environmentally friendly, presents substantial challenges in terms of handling, storage, and production, all of which require significant electrical energy.
Universal Hydrogen was not only innovating in aircraft modification but also in developing modular fuel storage cells and sourcing hydrogen from environmentally friendly processes. CEO Mark Cousin expressed pride in the accomplishments of his team and optimism about the future of their pioneering work.
“We are deeply proud of the work the team has done to create the first commercially viable hydrogen aviation ecosystem,” Cousins wrote. “It is our sincere hope that these efforts will live on as part of a future entity.”
The dissolution of Universal Hydrogen marks a setback for alternative fuel sources in aviation but also highlights the substantial challenges that new technologies face in obtaining financial backing and achieving commercial viability.
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