Airbus is putting the brakes on its zero-emission hydrogen-powered aircraft project, on account of technical challenges and slower adoption of the technology, The Wall Street Journal reported.
The company, which previously targeted to launch the aircraft by 2035, spent more than $1.7B on the project, sources told WSJ. Airbus has since cut the project's budget by a quarter and reallocated staff, pushing its timeline by as much as a decade.
Project challenges include reconfiguring engines to run on a different fuel, storing hydrogen in liquid form at -423°F, and requiring a new supply chain for the fuel. Airbus has been exploring using fuel cells, but the additional weight and limited electricity generation would lead to fewer seats and a narrower range for the aircraft.
The company said delaying the project would give it more time to fine-tune the technology. "Our destination is not changing," said Bruno Fichefeux, its head of future programs. "To get there, we need to adjust to reality."
In an earnings call in February, Airbus CEO Guillaume Faury said pushing the project's timeline would provide time to further develop the performance of fuel cell propulsion and liquid hydrogen system technologies.
Many companies have been scaling back their green initiatives, and broader enthusiasm for hydrogen is fading. Oil giant BP, which is pivoting back to fossil fuels, and Finland's Neste recently pulled plans for new hydrogen plants.
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