HTOO Secures Landmark South African JV, Paving the Way for Industrial Decarbonization and Recurring Revenues
Fusion Fuel Takes Majority Stake in Biosteam Energy, Targeting Carbon-Neutral Solutions
Fusion Fuel Green PLC (NASDAQ:HTOO) has entered into a definitive joint venture with Alien Fuel, creating Biosteam Energy to execute a flagship industrial decarbonization project in South Africa. The agreement solidifies Fusion Fuel's 51% controlling stake and brings together proprietary biomass technology and project management capabilities to help Fairfield Dairy transition from fossil fuels to a biomass-powered steam generation system.
Recurring Revenue and Carbon Credit Upside Drive Long-Term Potential
The joint venture’s primary focus is the Fairfield Project, which will replace Fairfield Dairy’s conventional fossil-fuel boiler with a biomass-based system. Powered by Alien Fuel’s proprietary technology, this upgrade aims to significantly lower both Scope 1 and Scope 2 carbon emissions using carbon-neutral wood pellets produced from waste biomass. The system is projected to become operational in the first quarter of 2026, supporting Fairfield Dairy’s decarbonization targets.
Fusion Fuel is advancing a R10 million loan (approx. EUR 480,000) to fund project management, with repayments scheduled from Biosteam Energy's future free cash flow. Beyond revenue from the direct steam supply agreement, Biosteam Energy anticipates additional income through verified carbon credit sales—stemming from both landfill avoidance and fuel-switching.
| JV Stakeholders | Ownership | Core Project | Financing | Expected Operation |
|---|---|---|---|---|
| Fusion Fuel | 51% | Fairfield Dairy biomass steam system | R10 million loan | Q1 2026 |
| Alien Fuel | 49% | Proprietary biomass boiler technology | Operational expertise | Q1 2026 |
Template for Future Growth: First Refusal Rights and M&A Momentum
The joint venture also grants Fusion Fuel a right of first refusal for any new projects or opportunities within Biosteam Energy’s business domain, giving it priority access to a growing pipeline of decarbonization initiatives in the region. This move positions HTOO to potentially scale up its recurring revenue streams and expand its green technology footprint.
Concurrently, HTOO remains active on the M&A front. The company is progressing on previously announced UK fuel distribution acquisition talks and is preparing for an Extraordinary General Meeting (EGM) on November 7, 2025. The EGM will consider a proposal to increase authorized share capital, potentially enabling large-scale deals—including strategic ventures in digital and commodity asset treasuries.
Strategic Takeaways for Investors
The combination of a secured joint venture, visible pathway to recurring revenues, and active M&A ambitions puts HTOO on the radar for investors seeking exposure to energy transition themes. While regulatory, operational, and project-finance risks remain—as disclosed in the company’s recent filings—this agreement provides a concrete template for repeatable, scalable industrial decarbonization projects.
What’s Next?
HTOO’s expansion in South Africa may prove pivotal if the Biosteam model succeeds, opening the door to similar deals across industrial clients with carbon-reduction mandates. Shareholders will want to watch progress at the Fairfield site and upcoming M&A developments—especially as management seeks new authorizations to support larger strategic moves in 2025 and beyond.
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