American Airlines announces strategic equity investment in Universal Hydrogen

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American Airlines (A1G) (AAL) has announced a strategic equity investment in Universal Hydrogen, a company developing a green hydrogen distribution and logistics network for aviation.  

The investment, which was announced by the airline on October 10, 2022, will support American Airlines’ (A1G) (AAL) target to reduce greenhouse gas emissions by 2035, and the airline’s commitment to achieve net zero emissions by 2050.  

“This investment makes American Airlines (A1G) (AAL) the first US airline to make two direct investments focused on the development of both hydrogen-electric propulsion technology and the future of hydrogen distribution logistics,” the air carrier said in a statement.  

American Airlines’ (A1G) (AAL) investment will support the development of a hydrogen fuel distribution network, based on the handling of modular hydrogen capsules.  

“This technology has the potential to be a game-changer on the industry’s path to zero-emission flight,” American Airlines CFO Derek Kerr said.  

“As the world’s largest airline, American has a responsibility to exercise leadership in making aviation sustainable. Our investment in Universal Hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for our industry,” the CFO added.  

According to Universal Hydrogen, such a solution will eliminate the necessity for new aircraft fueling infrastructure at airports and will allow for “rapid replacement of fuel modules on the aircraft”.  

 With plans to expand its services to larger single-aisle planes, Universal Hydrogen aims to launch its first hydrogen deliveries to smaller regional aircraft in 2025.