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DUBLIN - Fusion Fuel Green PLC (NASDAQ:HTOO), currently valued at $3.6 million in market capitalization, announced Monday it has signed a non-binding Letter of Intent to form a joint venture with a privately-held South African specialized fuel company. According to InvestingPro data, the company’s stock has declined 82.4% over the past year, though analysts anticipate sales growth in the current year.
The proposed joint venture would give Fusion Fuel a 51% controlling stake and focus on delivering a specialized fuel solution for a project in South Africa, according to a company press release. The first project has already been awarded to the partner by a subsidiary of a multinational food and beverage corporation.
Fusion Fuel plans to invest €480,000 ($528,000) into the joint venture over four months, with payments linked to project milestones. The company expects the project to generate approximately $248,000 in free cash flow during its first year of operation and approximately $1.27 million over five years.
"The LOI signifies a significant milestone in our commercial strategy," said John-Paul Backwell, CEO of Fusion Fuel. "Not merely a development opportunity, it would allow us to invest in an awarded and contracted project with immediate revenue implications."
The agreement includes a preferential return of capital to Fusion Fuel with 10% annual interest on its investment. The company will also have a right of first refusal on future projects from the partner for two years.
The joint venture would utilize the partner’s proprietary boiler technology for deployment at a South African commercial facility.
The LOI remains subject to satisfactory due diligence, finalization of definitive agreements, and customary closing conditions. The parties aim to execute definitive agreements and close the deal during the third quarter of 2025.
This potential transaction follows Fusion Fuel’s previously announced non-binding Heads of Terms to acquire a UK-based energy distribution company.
In other recent news, Fusion Fuel Green PLC has regained full compliance with Nasdaq listing requirements, as confirmed by the Nasdaq Hearings Panel. This development follows the completion of its 2025 Annual General Meeting and compliance with the Bid Price Rule. Additionally, Fusion Fuel’s majority-owned subsidiary, Al Shola Al Modea Gas Distribution LLC, has secured new liquefied petroleum gas (LPG) contracts in Dubai. These contracts involve the installation and maintenance of LPG systems and bulk supply for large-scale residential and commercial projects, with the largest valued at approximately AED 1.9 million ($517,000).
Furthermore, Fusion Fuel has received the first payment from the sale of its 50% equity stake in P2X Spain Sociedad Limitada to EREE Desarrollos Empresariales, S.L. The initial payment of €370,100 is part of a total expected sum of €515,100. In another development, Fusion Fuel’s subsidiary, Bright Hydrogen Solutions Ltd, has signed an agency agreement with Houpu Global Clean Energy Co., Ltd., a Chinese manufacturer. This agreement appoints BrightHy Solutions as Houpu’s authorized agent for hydrogen products in Iberia and Latin America, aiming to expand hydrogen infrastructure in these regions.
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