Airbus and MTU launch €1.2 billion hydrogen fuel‑cell engine joint venture

Airbus and MTU Aero Engines announced a €1.2 billion joint venture to develop the world’s first fully electric hydrogen fuel‑cell aircraft engine. The partnership, formalised on 7 July 2026, builds on a memorandum of understanding signed at the 2025 Paris Air Show and is slated to begin operations in 2027, subject to regulatory and employee approvals.

The new company will handle research, development, testing, certification and commercialisation of hydrogen fuel‑cell propulsion systems for commercial aviation. Airbus will contribute its expertise in aircraft development, liquid‑hydrogen storage and the ZEROe programme, while MTU will provide fuel‑cell engineering, engine integration and maintenance capabilities. Ownership is set at 75 % Airbus and 25 % MTU.

The venture aims to accelerate Europe’s push for zero‑emission aviation, targeting a commercially viable hydrogen‑powered commercial aircraft by the mid‑2030s. It also plans to support the broader hydrogen aviation ecosystem, including regulatory frameworks, infrastructure and supply‑chain development, to ensure technological sovereignty against competitors from the United States and China.