Fusion Fuel signs joint venture agreement with Alien Fuel

Fusion Fuel (HTOO) Green signed a Subscription and Shareholders Agreement with Alien Fuel to formally establish their joint venture vehicle, Biosteam Energy Proprietary, for the Fairfield Industrial Decarbonization Project in Howick, KwaZulu-Natal, South Africa. Under the joint venture structure, Fusion Fuel will hold a 51% ownership stake in Biosteam Energy, with Alien Fuel retaining 49%. Under the terms of the Fairfield Project and the Joint Venture Agreement, Biosteam Energy will manage the financing, construction, and operation of a biomass-powered steam generation system to replace the fossil-fuel-based boiler at Fairfield Dairy, one of South Africa’s largest dairy processing facilities. The new boiler system, designed and operated using Alien Fuel’s proprietary biomass technology, will use carbon-neutral wood pellets produced from waste biomass, designed to reduce Scope 1 and Scope 2 carbon emissions at the site. The system is expected to be operational in the first quarter of 2026 and significantly supports the decarbonization and sustainability goals of Fairfield Dairy. Fusion Fuel will advance a loan of R10M under a payment schedule to fund the management and administration of Biosteam Energy, and specifically the Fairfield Project. Biosteam Energy is expected to generate long term recurring revenues through a steam supply agreement between Biosteam Energy and Fairfield Dairy, as well as additional income from verified carbon credit revenues arising from landfill avoidance and fuel-switching benefits. The loan will be repaid based on the availability of free cash flow after certain expenses and accumulated cash balances. In addition to the initial Fairfield Project, the Joint Venture Agreement also grants Fusion Fuel a right of first refusal to participate in new projects, business opportunities, or ventures within the scope of Biosteam Energy’s business that have been offered to Alien Energy or certain of its affiliates, with a particular interest in the green and sustainable energy projects such as this first bio-steam venture.