Airbus and MTU Aero Engines will set up a joint venture in 2027 to develop and commercialise a fully electric hydrogen fuel cell engine for aviation, the two European aerospace giants announced from Toulouse on July 7, 2026. The move upgrades a June 2025 Memorandum of Understanding into a dedicated organisational vehicle for accelerating the design, testing and certification of what could become the first commercial hydrogen fuel cell propulsion system.
From MoU to a European powerhouse
The new entity will draw engineering and manufacturing teams from both parent companies. "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," Bruno Fichefeux, Head of Future Programmes at Airbus, said in the release. Airbus is contributing its ZEROe programme know-how — including significant work on fuel cell propulsion and liquid hydrogen — while MTU Aero Engines brings its Flying Fuel Cell design, eMoSys electric motor and Munich test cell, plus engine certification and lifecycle expertise.
Why hydrogen, why now
A hydrogen fuel cell generates electricity from hydrogen and oxygen with water vapour as the only byproduct, eliminating in-flight CO2 and NOx emissions. Airbus narrowed its ZEROe focus to a fully electric hydrogen fuel cell propulsion system in March 2025 after prototype and powertrain testing supported the concept's viability. Dr. Stefan Weber, SVP Engineering and Technology at MTU, called the plan "a crucial milestone on our path to the first hydrogen-powered engine — and this is true European technology leadership."
Next steps
The agreement is non-binding and subject to standard regulatory approvals and completion of European and national social processes, with the JV expected to start operations in 2027. Beyond the engine itself, Airbus and MTU said they will continue to help develop the hydrogen aviation economy and its regulatory framework — critical enablers for any commercial scale-up.
Reporting based on coverage from Airbus and MTU Aero Engines.