After elevating $100 million by way of buyers, it has run out of funds and is closing up store
Common Hydrogen, the pioneering hydrogen airplane firm that final yr flew {a partially} H2-powered craft out of Moses Lake, has spent the $100 million its buyers introduced in and is now shutting down.
The corporate was among the many extra notable H2 flight-focused gamers
The enterprise was centered on the design and growth of hydrogen airplane expertise for extra sustainable, emission-free flights utilizing H2 to energy engines as a substitute of typical jet gas.
Final yr in March, one in every of its designs took off from Moses Lake, and was celebrated in Washington State, together with by its Governor Jay Inslee, as a serious clear vitality breakthrough.
In March 2024, Common Hydrogen was nonetheless receiving the reward, as Quick Firm journal had named it one in every of its “Most innovative companies of 2024.” Aviation Week stated that the corporate’s “behind the scenes, the zero-emissions startup is busy preparing to take propulsion-system testing to the next level,” in Could, including that Universal Hydrogen was preparing for an additional 10 check flights.
The hydrogen airplane expertise firm has issued a letter to its shareholders
Shareholders just lately acquired a letter from Common Hydrogen CEO and Chair Mark Cousin. Within the letter, Cousin defined that the board had come to a proper resolution to shutter the corporate following unsuccessful efforts to usher in extra funding {dollars}.
“We were unable to secure sufficient equity or debt financing to continue operations and similarly were unable to secure an actionable offer for a sale of the business or similar strategic exit transaction,” stated the letter from Cousin.
He added that the hydrogen airplane firm had just lately spoken with exiting buyers relating to participation in a rights providing, however curiosity on this transfer was insufficient.
Happy with what they completed
In accordance with the letter from Cousin to buyers, the corporate is pleased with what they have been capable of obtain, and of what the crew was capable of carry to the world.
“We are deeply proud of the work the team has done to create the first commercially viable hydrogen aviation ecosystem,” stated the shut of Cousin’s letter. “It is our sincere hope that these efforts will live on as part of a future entity.”
The challenges to the hydrogen airplane firm have been too nice
Paul Eremenko first based Common Hydrogen in 2020. Eremenko had beforehand labored as Airbus Chief Expertise Officer and had a concentrate on clear vitality. He based the corporate to determine necessary progress prematurely of what he predicted was an existential disaster in air transportation in coming a long time because the local weather disaster worsens and nations and corporations search to decarbonize.
The corporate did effectively throughout its startup section fundraising, as Eremenko’s type and technical experience had excessive attraction in Silicon Valley. That stated, he defined in his letter that over time, non-public fairness companies misplaced a few of their enthusiasm concerning the idea due to the looming recession risk and ongoing excessive rates of interest.
The election barrier
One other main barrier to the hydrogen airplane firm’s skill to usher in extra funding funds has to do with uncertainty relating to the upcoming US election.
“If (Donald) Trump were to win, investors saw a significant risk that the massive green hydrogen subsidy enacted as part of the Biden Inflation Reduction Act would disappear,” said Eremenko in his letter.
Eremenko had tried to salvage the company with a final effort to merge Universal Hydrogen with a regional airline in order to retrofit the existing aircraft fleet to be powered by H2. Media reports indicated that it had looked into such a merger with Silver Airways out of Florida. However, “the merger did not come to fruition and Universal Hydrogen is now liquidating,” said Eremenko.
