Airbus and MTU Aero Engines have signed an agreement to establish a joint venture to develop, certify, and commercialise a fully electric hydrogen fuel cell engine, with operations scheduled to begin in 2027.

The non-binding agreement follows a memorandum of understanding signed at the Paris Air Show in June 2025 and is subject to regulatory approvals and European social processes. The partnership aims to accelerate the industrialisation of alternative propulsion systems, directly impacting long-term asset lifecycle management and future regional fleet procurement strategies.

The new entity will pool engineering and manufacturing teams from both organisations to cover the complete lifecycle of fuel cell powertrains, including development, testing, certification, and commercial maintenance. Airbus brings commercial aircraft programme knowledge and liquid hydrogen infrastructure expertise, while MTU Aero Engines provides engine design, validation, integration, and MRO capabilities. The venture seeks to deliver the first hydrogen-based fuel cell propulsion system for a commercial aircraft, targeting the next generation of regional and short-haul aviation.

The project introduces regulatory and capital expenditure considerations for regional operators, as both manufacturers plan to jointly lobby for the emergence of a hydrogen aviation economy and the accompanying regulatory certification framework required for commercial flight at scale.

“Our planned joint venture is the next logical step in our shared vision of a hydrogen-based propulsion concept for aviation,” said Bruno Fichefeux, head of future programmes at Airbus. “By pooling our respective technology and expertise into a dedicated entity, we are establishing a European powerhouse capable of transforming advanced research into industrialised, certifiable electric propulsion systems. This new company will help secure strategic sovereignty in the next generation of aviation technologies while strengthening our ability to achieve the long-term ZEROe ambition.”

“Our ambitious goal is to pave the way for a newly developed, safe, reliable and economical propulsion system that will contribute to climate-neutral aviation,” said Stefan Weber, senior vice president of engineering and technology at MTU Aero Engines. “This project is a crucial milestone on our path to the first hydrogen-powered engine – and this is true European technology leadership. To that end, we want to create a company that covers the entire life cycle of fuel cell powertrains – from development and testing through certification to commercialisation.”