Universal Hydrogen is to establish its manufacturing and distribution center for its hydrogen aircraft propulsion systems in Albuquerque, New Mexico. The California-based start-up this week signed an agreement with New Mexico's governor, Michelle Lujan Grisham, to develop the facility on 50 acres at the city’s main airport, which is called the Albuquerque International Sunport. The plan is for it to be ready to start production in 2024 to support commercial flights beginning in 2025.

The company is working on a hydrogen fuel cell powertrain that will be used to convert regional airliners such as the Dash 8 and ATR72 twin turboprops. Its concept calls for green hydrogen to be supplied directly to airports in capsules and fitted directly into a compartment at the rear of the aircraft fuselage.

In this week’s announcement, Universal Hydrogen said it will invest over $254 million in the Albuquerque facility and intends to recruit around 500 employees over the next seven years. The company has also announced plans to establish an engineering center at Toulouse in France.

In October 2021, Universal Hydrogen raised an additional $62 million to support its plans to convert regional airliners to hydrogen propulsion, bringing its total fundraising to date to $85 million. It says it has commitments to convert nearly 100 aircraft from prospective airline customers, including Air Nostrum, Icelandair, ASL Aviation, and Air Nostrum.

In an October 14 announcement, Universal Hydrogen said the new capital will allow it to press ahead with flight testing of its hydrogen fuel cell powertrain on a 40-plus-seat ATR 42 regional airliner at Moses Lake in Washington state. The green hydrogen for the flight will be supplied using the company’s modular fuel capsules, which are installed in a compartment in the rear of the fuselage.

According to the company, its proprietary technology allows the hydrogen fuel to be delivered directly from production facilities to the aircraft using existing freight services and airport cargo-handling equipment. It also claims that the capsules are significantly lighter than other current hydrogen storage hardware.

“Hydrogen is the best and only scalable solution to truly decarbonize aviation, and we want to bring it to market decades sooner than anyone thought possible—by 2025,” said Universal Hydrogen co-founder and general counsel Jon Gordon. He said that the company chose Albuquerque because it offers convenient connections to air, rail, and highways, as well as partnership opportunities with local government, industry, and research institutions.