Fusion Fuel Launches €30M Platform to De-Risk Green Hydrogen Projects

DUBLIN, IRELAND – December 29, 2025 – In a move designed to tackle one of the biggest obstacles in the energy transition, Fusion Fuel Green PLC announced today that its subsidiary, BrightHy Solutions, has finalized agreements to launch a dedicated investment platform for green hydrogen. The new entity, Bright Hydrogen Holding Company Limited, is backed by a targeted commitment of up to €30 million from an unnamed green energy technologies provider, aiming to streamline the financing and delivery of industrial-scale hydrogen projects.

The initiative’s first test will be a green hydrogen production facility for an industrial cement operator in Spain, with construction slated to begin in the first quarter of 2026. The deal marks a significant evolution from a previously announced non-binding term sheet, establishing a formal structure that could serve as a new blueprint for funding the capital-intensive green hydrogen sector.

A Novel Model for a High-Risk Market

The core of the new platform is a financial structure intended to de-risk investments in a notoriously challenging market. While global ambitions for green hydrogen are vast, industry analysts note that less than 10% of announced projects have reached a Final Investment Decision (FID). The primary hurdles are the massive upfront capital required for electrolyzer plants and the perceived risk by traditional financiers, who are often hesitant to back nascent technologies without guaranteed long-term offtake agreements.

Bright Hydrogen Holding confronts this issue directly. The Partner’s €30 million commitment will not be deployed as a single lump sum. Instead, it will be released in three potential tranches of €10 million each. Capital will only be allocated to specific projects after they have been vetted and approved by the platform's investment committee and board, which includes a director appointed by the financing Partner. This phased approach allows investors to commit capital incrementally as projects meet key milestones, significantly lowering the initial financial exposure.

“By introducing a phased investment approach for green hydrogen projects that aims to lower upfront capital obligations at the project company level... we believe we are pioneering a novel solution for green hydrogen projects and supporting industrial companies to execute their decarbonization efforts,” said Frederico Figueira de Chaves, CEO of BrightHy Solutions, in the official announcement.

Under the agreement, the Partner will wholly own the holding company, while BrightHy Solutions will act as the exclusive manager and development partner. BrightHy will be responsible for sourcing opportunities, conducting due diligence, and overseeing project execution. This structure allows the technology and development experts to manage the operational risks, while the financial partner maintains control over capital allocation. Revenue for BrightHy Solutions is expected from annual management fees, performance fees on returns, and potential contracts as the engineering, procurement, and construction (EPC) provider for the hydrogen plants.

Spain's Cement Sector Becomes the Proving Ground

The choice of the platform's inaugural project is highly strategic. Targeting an industrial cement operator in Spain places the venture at the intersection of a high-need industry and a high-ambition country. The cement sector is notoriously difficult to decarbonize, accounting for a significant share of industrial emissions. In Spain, it represents 41% of total process emissions, making it a critical target for the nation's climate goals.

Spain has aggressively positioned itself as a future leader in Europe’s hydrogen economy. Its national hydrogen roadmap, updated in 2024, sets an ambitious target of 12 GW of installed electrolyzer capacity by 2030, a significant increase from its initial 4 GW goal. To fuel this growth, the government has earmarked billions in public funds, including €1.55 billion specifically for renewable hydrogen, which is expected to mobilize nearly €3 billion in private capital. This supportive regulatory landscape, combined with Spain's abundant solar and wind resources, makes it an ideal location for pioneering green hydrogen applications.

The project will provide a real-world test case for replacing fossil fuels in one of the most challenging industrial processes. The Spanish cement industry has committed to achieving climate neutrality by 2050, a goal that is unattainable without breakthrough technologies like green hydrogen for high-temperature heat processes. A successful deployment could validate the technical and commercial viability of hydrogen in this sector, encouraging wider adoption.

A Strategic Pivot for Fusion Fuel

For Fusion Fuel Green PLC, this platform represents a critical strategic evolution beyond its roots as a technology provider. The company, which developed its own Proton Exchange Membrane (PEM) electrolyzer technology, is now positioning itself as a full-spectrum project enabler, involved in development, management, and financing.

This pivot comes at a crucial time. Recent financial metrics indicate the company has been rapidly using its cash reserves, with short-term obligations exceeding its liquid assets. The creation of Bright Hydrogen Holding provides a vehicle to secure external capital and generate new, diversified revenue streams. This model reduces Fusion Fuel's own capital expenditure on projects while allowing it to leverage its technical expertise to earn management and performance fees, creating a more sustainable and scalable business model.

The move aligns with a broader strategy seen in recent months. In July 2025, BrightHy Solutions signed an agency agreement with a major manufacturer of hydrogen refueling equipment to build out infrastructure in Iberia and Latin America. This new investment platform is another, more significant step toward building an entire ecosystem around its hydrogen solutions, moving from selling equipment to delivering turnkey decarbonization projects.

Navigating Market Headwinds and Opportunities

The Bright Hydrogen Holding platform launches into a global market characterized by both immense promise and significant friction. Projections show the green hydrogen market expanding at a staggering rate, potentially reaching over $30 billion by 2030. Europe is at the forefront, with the EU's Hydrogen Strategy and Green Deal funneling billions into the sector to establish energy independence and meet climate targets.

However, the gap between announcements and operational projects remains wide. High production costs, the need for subsidies to bridge the price gap with fossil-based hydrogen, and offtake uncertainty are persistent challenges. The model pioneered by Fusion Fuel and its unnamed partner is a direct response to this financing bottleneck.

If successful, this de-risked, phased-capital approach could become an attractive template for other developers and investors looking to enter the hydrogen space. It offers a structured way to manage the financial risks associated with first-of-a-kind industrial projects. The success of the Spanish cement project will be watched closely by the entire industry, as it could unlock a new wave of private investment needed to turn Europe’s ambitious hydrogen roadmaps into a functioning, industrial-scale reality.