Fusion Fuel to form JV with South Africa-based specialized fuel company

Fusion Fuel (HTOO) Green announced the signing of a non-binding Letter of Intent, or LOI, to form a joint venture with a privately-held South Africa-based specialized fuel company aimed at delivering a specialized fuel solution for a project in South Africa. The first project for the JV has been awarded to the Partner by a subsidiary of a multinational food and beverage corporation. The proposed transaction aligns with Fusion Fuel’s strategic focus on near-term, revenue-generating, integrated energy investments. The project utilizes the Partner’s proprietary boiler technology. The first energy solution as part of the JV is planned for deployment at a South African commercial facility and is expected to provide immediate commercial use and strong visibility on cash flow. Key terms of the LOI include: Fusion Fuel Majority Stake; EUR 480,000 Total Investment; Innovative Proprietary Technology. The LOI provides for a preferential return of capital to Fusion Fuel and 10% annual interest on Fusion Fuel’s investment. The project is expected to generate substantial returns based on approximately $248,000 in free cash flow during its first year of operation, with approximately $1.27M in free cash flow expected over five years. Fusion Fuel will have the first option on future projects from the Partner for two years, allowing scalable growth in the region, with several new projects in development. The LOI is non-binding and remains subject to satisfactory due diligence, finalization of definitive agreements, and customary closing conditions. The parties are targeting execution of definitive agreement and closing during the Q3.