American Airlines invests in green H2 infrastructure firm Universal Hydrogen

American Airlines Group (NASDAQ:AAL) has made a strategic equity investment of an undisclosed amount in US green hydrogen distributor Universal Hydrogen Co as part of its carbon reduction goal by 2035.

The transaction makes the airline the first US company in the sector to directly invest in the development of the hydrogen-electric propulsion technology and the future of hydrogen distribution logistics, it said on Monday.

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Hawthorne, California-based Universal Hydrogen is building a hydrogen logistics network to serve the aviation industry. Its technology is based on using modular hydrogen capsules that are handled like cargo and that eliminates the need for new fueling infrastructure at airports. The company says it focuses on regional and narrowbody planes as the near-term and most meaningful decarbonisation opportunities. It expects to make the first hydrogen deliveries for regional aircraft in 2025, while supplies to larger, single-aisle aircraft as auxiliary fuel are anticipated in the late 2020s.

Airbus Ventures, GE Aviation and Toyota Ventures roll out the list of investors in Universal Hydrogen.

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

American Airlines aims to achieve net zero greenhouse gas emissions by 2050.