Fusion Fuel subsidiary wins $1.2 million in Dubai energy projects

Published 24/06/2025, 17:10
 Fusion Fuel subsidiary wins $1.2 million in Dubai energy projects

DUBAI - Fusion Fuel Green PLC (NASDAQ:HTOO), currently trading at $0.22 per share with a market capitalization of $5.33 million, announced Tuesday that its majority-owned subsidiary, Al Shola Al Modea Gas Distribution LLC, has secured AED 4.4 million (~$1.2 million) in new engineering and utility projects across Dubai. According to InvestingPro data, analysts anticipate sales growth for the company in the current year, with revenue projected to increase by over 43%.

These new contracts follow the company’s previous announcement on May 22, 2025, when Al Shola Gas reported securing over $2.7 million in engineering contracts and 1,800 new residential service contracts since the beginning of the year. While the company’s gross profit margin stands at 27.23%, InvestingPro analysis indicates the company is currently undervalued. For detailed insights and 15+ additional ProTips about HTOO, explore the comprehensive Pro Research Report available on InvestingPro.

The new projects include a DBOM contract for 620 residential apartments and retail outlets in Dubai Marina Development valued at AED 885,000, a high-rise development in Business Bay Tower with 242 apartments worth AED 395,000, and a mid-rise development in Satwa with 240 apartments valued at AED 2.6 million. Four smaller projects across Dubai collectively valued at AED 520,000 were also secured.

According to the company, all new projects will convert to recurring revenue through long-term utility service contracts.

"We continue to see strong demand for our end-to-end energy infrastructure solutions, particularly in Dubai’s high-density residential sector," said Sanjeeb Safir, Managing Director of Al Shola Gas, in the press release.

The company reported that Al Shola Gas has expanded its utility billing footprint to over 12,000 active customers. Its bulk LPG supply volumes currently exceed 600 metric tons per month, with organic growth of 10-20 metric tons monthly. The company aims to reach 800 metric tons monthly by year-end. Despite these growth initiatives, investors should note that the company faces some financial challenges, with a current ratio of 0.54 indicating potential liquidity constraints. Get access to comprehensive financial health metrics and expert analysis through InvestingPro’s exclusive research reports, covering over 1,400 US stocks.

Fusion Fuel Green PLC provides energy supply, distribution, and engineering services through its Al Shola Gas and BrightHy brands, offering LPG systems design, supply, and maintenance to commercial, industrial, and residential sectors.

In other recent news, Fusion Fuel Green PLC announced plans to acquire a UK-based fuel distribution company for £50 million. The acquisition involves a combination of cash, debt financing, and Fusion Fuel shares, pending regulatory approvals and due diligence. The unnamed company reported revenues of $58 million and net income of $7 million for the fiscal year ending April 30, 2025. Fusion Fuel’s CEO, John-Paul Backwell, highlighted the strategic alignment of this acquisition with the company’s growth strategy, emphasizing its potential to enhance their energy distribution capabilities. Additionally, Fusion Fuel has secured new contracts worth $3.6 million through its subsidiary Al Shola Al Modea Gas Distribution LLC, reflecting the company’s expanding reach in engineering and service contracts.

In another development, Fusion Fuel Green amended its financial projections following its acquisition of Quality Industrial Corp., providing updated unaudited financial information. Meanwhile, BrightHy Solutions, a subsidiary of Fusion Fuel, entered a strategic partnership with Sungrow Hydrogen to advance hydrogen production technologies in the Iberian region. This collaboration aims to leverage BrightHy’s engineering expertise and market presence to support Sungrow Hydrogen’s innovative solutions. These recent developments underscore Fusion Fuel’s strategic initiatives and ongoing expansion in the energy sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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