Fusion Fuel Green Signs Non-Binding LOI To Form JV With Privately-Held South Africa-Based Fuel Company To Develop Fuel Solution For Project In South Africa

Fusion Fuel Green PLC (NASDAQ:HTOO) ("Fusion Fuel" or the "Company"), a provider of integrated energy solutions, today announced the signing of a non-binding Letter of Intent ("LOI") to form a joint venture ("JV") with a privately-held South Africa-based specialized fuel company (the "Partner") 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: Fusion Fuel will hold a 51% controlling interest in the JV, ensuring financial consolidation and strategic alignment.
• €480,000 Total Investment: Fusion Fuel will invest a total of €480,000 into the JV over four months, with payments linked to project milestones and operational readiness.
• Innovative Proprietary Technology: The Partner brings a fuel technology tailored for industrial applications in off-grid environments.
• Robust Returns and Cash Flow: 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 $1.27 million in free cash flow expected over five years.
• Right of First Refusal: 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 third quarter of 2025.