Airbus aims to bring the world's first emissions-free passenger plane into service by 2035. Photo: Airbus
Airbus aims to bring the world's first emissions-free passenger plane into service by 2035. Photo: Airbus
Airbus aims to bring the world's first emissions-free passenger plane into service by 2035. Photo: Airbus
Airbus aims to bring the world's first emissions-free passenger plane into service by 2035. Photo: Airbus

Airbus partners with CFM to develop hydrogen combustion technology


Alkesh Sharma
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The world’s biggest plane maker Airbus is teaming up with engine manufacturer CFM International to test and pioneer hydrogen combustion technology.

The initiative is expected to yield tangible results, which will be enacted across the industry, by 2035, the entities said in a joint statement on Tuesday.

They aim to test a direct combustion engine fuelled by hydrogen in preparation for a zero-emission aircraft to enter-into-service by the same year.

Airbus and Ohio-based CFM will use an A380 flying test bed equipped with liquid hydrogen tanks prepared at Airbus facilities in France and Germany.

“This is the most significant step undertaken at Airbus to usher in a new era of hydrogen-powered flight since the unveiling of our ZEROe concepts back in September 2020,” Airbus’s chief technical officer Sabine Klauke said.

“By leveraging the expertise of American and European engine manufacturers to make progress on hydrogen combustion technology, this international partnership sends a clear message that our industry is committed to making zero-emission flight a reality,” Ms Klauke said.

Airbus said it will also work to define the hydrogen propulsion system requirements, oversee flight testing and provide the A380 platform to test the hydrogen combustion engine in cruise phase.

In September 2020, the Toulouse, France-based company revealed three designs it is considering for the hydrogen-powered aircraft as it seeks to bring the world's first emissions-free passenger plane into service.

This month, the company’s chief executive Guillaume Faury told a German newspaper that Airbus may soon make its own engines for its hydrogen-fuelled planes

About 60 companies in the aviation industry have committed to increasing to 10 per cent the share of sustainable aviation fuels on the market by 2030.

“Hydrogen combustion capability is one of the foundational technologies we are developing,” CFM’s chief executive and president Gael Meheust said.

“Bringing together the collective capabilities and experience of CFM, our parent companies and Airbus, we really do have the dream team in place to successfully demonstrate a hydrogen propulsion system,” Mr Meheust added.

CFM is a 50/50 joint venture between GE Aviation, a division of Boston’s General Electric, and French aerospace engine manufacturer Safran Aircraft Engines.

The company said it will modify the combustor, fuel system and control system of a turbofan to run on hydrogen. The engine was selected for this programme because of its physical size, advanced turbo machinery and fuel flow capability.

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: February 23, 2022, 7:11 AM