Los Angeles-based aviation technology startup Universal Hydrogen announced Thursday that it raised $20.5 million in fresh financing. The Series A, led by Playground Global, will enable the company to accelerate development of its hydrogen logistics network and regional aircraft conversion kits — technology needed to fuel its vision of a carbon-free air travel future.
“We believe that adopting hydrogen is the most realistic way for the aviation industry to achieve net zero emissions,” Jason Chua, co-founder and COO of Universal Hydrogen, said in an email to Built In.
According to a 2018 report by the U.N. International Panel on Climate Change (IPCC), global emissions must be brought to net zero by 2050 in order to avert catastrophic climate change. While air travel emits fewer emissions than sources like passenger cars or power plants, it still is falling well behind that target.
“The aviation industry’s most recent roadmap shows a yawning gap in achieving even half of that,” Chua said. “Substantive action must be taken now in order to meaningfully impact the industry’s emission levels in time to meet the IPCC goals.”
Universal procures hydrogen from its suppliers and packages it in its modular capsules. Hydrogen fuel cells produce electricity by combining hydrogen and oxygen. These fuel cells can be utilized in a variety in different ways, including to power an aircraft.
The capsules make it easier to transport over existing shipping networks without the need to build new infrastructure, according to Chua. Once the capsules land at their final destination, airports can plug them directly into aircraft.
To accelerate market adoption of its hydrogen-powered flight solution, the company is also developing a conversion kit to retrofit existing regional airplanes with its green technology. The conversion kit consists of a hydrogen-electric powertrain that’s compatible with the company’s existing hydrogen capsule.
“As post-pandemic air travel begins to rebound, we’re committed to helping travelers and commercial aviation operators reduce their carbon footprint, driving the industry toward true zero emissions,” Chua continued.
The first commercial flights with Universal’s tech are planned no later than 2025. Operating costs are expected to remain the same as those of conventional hydrocarbon-burning airplanes, according to Chua.
Following the latest raise, Universal plans to invest in fully testing both liquid and gaseous incarnations of its hydrogen capsules. The company also plans to rapidly expand the size of its team with 10 engineering roles currently up for grabs.
Universal Hydrogen has raised $23.5 million in venture capital financing to date, according to the company.
Additional investors Fortescue Future Industries, Coatue and Global Founders Capital participated in the round, among others.
