The proposed venture builds on a memorandum of understanding signed by the two companies at the Paris Air Show in June 2025 and is expected to begin operations in 2027, subject to regulatory approvals.
The new company will combine Airbus' expertise in commercial aircraft, hydrogen propulsion and liquid hydrogen technologies with MTU's experience in fuel cell technology, engine design, integration, certification and maintenance.
"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 Dr Stefan Weber, SVP 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."
Airbus' ZEROe programme is the company's initiative to develop zero-emission commercial aircraft powered by technologies such as hydrogen fuel cells.
The joint venture aims to accelerate the development of hydrogen fuel cell propulsion technology by bringing together engineering, manufacturing and certification expertise from both companies.
Hydrogen fuel cells generate electricity through an electrochemical reaction between hydrogen and oxygen, producing only water vapour as a by-product. The technology has the potential to eliminate in-flight carbon dioxide (CO₂) and nitrogen oxide (NOₓ) emissions while reducing aviation's long-term climate impact.
According to Airbus and MTU, the partnership aims to develop the first hydrogen fuel cell propulsion system for a commercial aircraft while supporting the broader growth of a hydrogen aviation ecosystem.
Airbus announced in March 2025 that it would focus its ZEROe programme on developing a fully electric fuel cell propulsion system after prototype and powertrain testing demonstrated the technology's potential.
MTU Aero Engines has also advanced its Flying Fuel Cell programme, completing the engine design, beginning stack manufacturing for its demonstrator, successfully testing its eMoSys electric motor and bringing its first fuel cell test facility into operation in Munich.
Beyond developing propulsion technology, Airbus and MTU say they will continue supporting the regulatory framework and infrastructure needed to enable hydrogen-powered commercial aviation.
