Airbus and MTU Aero Engines have announced plans to establish a dedicated joint venture focused on the development and commercialisation of a fully electric hydrogen fuel cell engine. This upcoming milestone directly follows a Memorandum of Understanding (MoU) signed by both aerospace leaders at the Paris Air Show in June 2025.

By creating a highly agile organisational structure, the partners aim to accelerate the technology development, design, testing and certification of a revolutionary propulsion system for commercial aviation. Supported by the specialized engineering and manufacturing capabilities of both parent organisations, the new entity is expected to commence formal operations in 2027, subject to standard regulatory approvals and European social processes.

“Our planned joint venture is the next logical step in our shared vision of a hydrogen-based propulsion concept for aviation,” stated Bruno Fichefeux, Head of Future Programmes at Airbus. Fichefeux emphasized that pooling their respective technology into a dedicated entity establishes a European powerhouse capable of transforming advanced research into industrialised, certifiable electric propulsion systems while securing strategic sovereignty for next-generation aviation.

Dr. Stefan Weber, SVP Engineering and Technology at MTU Aero Engines, added that the project represents true European technology leadership. Weber noted that the ambitious goal is to pave the way for a safe, reliable and economical propulsion system that covers the entire life cycle of fuel cell powertrains—spanning from early development and testing through to certification and eventual commercialisation.

The venture leverages Airbus’ extensive commercial aircraft programme knowledge, liquid hydrogen expertise and fuel cell capabilities alongside MTU’s multi-year fuel cell technology development, engine design, validation and maintenance expertise. Beyond the core engine technologies, both companies intend to actively foster the broader hydrogen aviation economy and the necessary regulatory frameworks required to scale hydrogen-powered flight.

The initiative builds on significant testing milestones achieved by both companies. In March 2025, Airbus confirmed its strategic focus on fully electric fuel cell propulsion following successful prototype and cryogenic research testing. Simultaneously, MTU has locked in the design for its Flying Fuel Cell, commenced stack manufacturing for its demonstrator, successfully tested its eMoSys electric motor and commissioned its first dedicated test cell in Munich.