Fusion Fuel Receives Notification of IPCEI Approval from European Commission for 630 MW HEVO-Portugal Project

Rhea-AI Summary

Fusion Fuel (NASDAQ: HTOO) receives approval from the European Commission for its HEVO-Portugal project under the IPCEI Hy2Infra program. The €650 million project in Sines, Portugal, will produce 62,000 tonnes of green hydrogen annually, with a portion exported to the Netherlands and the rest used domestically. Fusion Fuel and partners can now start funding negotiations with government stakeholders and the European Investment Bank.

Energy Sector Analyst

The announcement that Fusion Fuel's HEVO-Portugal project has been selected for approval under the IPCEI Hy2Infra program is significant for the company and the broader energy sector. The project's scale, with a planned production of 62,000 tonnes of green hydrogen annually, positions it as one of the largest electrolyzer projects in Europe. This development is poised to enhance Fusion Fuel's market presence and could potentially lead to increased investor confidence in the company's stock.

From an industry perspective, the integration of green hydrogen production with green ammonia exportation reflects a strategic move towards creating a robust value chain within the renewable energy market. The linkage between the Port of Sines and the Port of Rotterdam also highlights the growing importance of inter-European energy trade routes in the green economy. This could set a precedent for similar projects, thereby stimulating the green hydrogen sector and potentially impacting energy stock valuations across the board.

Environmental Policy Expert

The HEVO-Portugal project's approval under the IPCEI is a testament to the European Union's commitment to supporting large-scale, sustainable energy initiatives. The project aligns with the EU's Green Deal objectives and its ambition to become carbon-neutral by 2050. By facilitating the production and export of green hydrogen and ammonia, the project contributes to the diversification of Europe's energy sources, which is vital for energy security and reducing dependency on fossil fuels.

Moreover, the strategic location of Sines as a green hydrogen hub can be seen as a move to strengthen Portugal's position in the renewable energy landscape, potentially attracting further investments into the country. The environmental policy implications are substantial, as successful implementation could serve as a blueprint for future projects, influencing regulations and funding allocations within the EU.

Financial Analyst

The financial implications of the HEVO-Portugal project's selection by the European Commission are multifaceted. Fusion Fuel's ability to secure funding negotiations with government stakeholders and the European Investment Bank is a crucial step towards the project's realization. The provision of financing and advisory support from the European Investment Bank could improve the project's financial viability and reduce the capital risk for Fusion Fuel and its investors.

Investors should monitor the progress of funding negotiations and subsequent project milestones, as these will provide important indicators of the project's financial health and Fusion Fuel's operational capabilities. Additionally, the project's success could lead to increased demand for Fusion Fuel's HEVO technology, potentially driving revenue growth and enhancing shareholder value in the long term.

SABUGO, Portugal, Feb. 16, 2024 (GLOBE NEWSWIRE) -- Fusion Fuel (NASDAQ: HTOO) (the “Company”) is pleased to announce that it has received notification from the European Commission that the Company’s HEVO-Portugal project was among 33 selected for approval under the Important Projects of Common European Interest (“IPCEI”) Hy2Infra program. The €650 million, 630 MW project is to be developed in Sines, Portugal, and would produce 62,000 tonnes of green hydrogen per annum. A portion of the green hydrogen is expected to be used in the production of green ammonia and exported from the Port of Sines to the Port of Rotterdam in the Netherlands. The balance would be consumed by industrial customers in the domestic Portuguese market.

The IPCEI approval positions Fusion Fuel and its partners to commence funding negotiations with the relevant government stakeholders, as well as with the European Investment Bank, which has committed to providing financing and advisory support to those projects selected for public funding.

Frederico Figueira de Chaves, CEO of Fusion Fuel, stated, “This is a game changing achievement for Fusion Fuel, solidifying our position amongst the leading companies in the green hydrogen industry. HEVO-Portugal is one of the largest electrolyzer projects approved in the Hy2Infra wave, a testament to the exceptional innovation of our HEVO technology and the strong conviction that Portugal and the European Union have in our ability to successfully deliver this all-important project. This announcement marks the culmination of a journey that we began four years ago, one that we have quietly pushed forward in the background while focusing relentlessly on the execution of our near-term priorities. I would like to take this opportunity to express my profound appreciation to the team for their diligence and determination in helping us reach this watershed moment.”

Pedro Caçorino Dias, Fusion Fuel’s Head of Commercial for Portugal, added, “The HEVO-Portugal project was conceived of not only as the centerpiece of Fusion Fuel’s green hydrogen project portfolio, but also as the most ambitious green hydrogen project in Portugal. Our vision in creating the project was to help establish Sines as the principal green hydrogen hub of Southern Europe and unite two major European ports in advancing the green energy economy, and in doing so, create substantial spillover benefits to both regions and to industries across Europe. While we are still in the very early innings, we are confident that HEVO-Portugal will be instrumental in contributing to the rapid decarbonization of Portugal’s largest industrial hub and, most importantly, in helping catalyze the European green hydrogen economy.”

About Fusion Fuel Green plc

Fusion Fuel is rapidly emerging as a leader in the green hydrogen sector committed to accelerating the energy transition through the development of disruptive, clean hydrogen solutions. Fusion Fuel’s patented miniaturized Proton Exchange Membrane (PEM) electrolyzer, the HEVO, and building-block approach to green hydrogen production, unlock unprecedented modularity and flexibility in the design and deployment of cost-competitive, decentralized green hydrogen solutions. Its business lines include the sale of its electrolyzer technology to customers interested in building their own green hydrogen production, the development of turnkey hydrogen plants to be owned and operated by Fusion Fuel, and the sale of green hydrogen as a commodity to end-users through long-term hydrogen purchase agreements. Learn more about Fusion Fuel by visiting our website at https://www.fusion-fuel.eu, and by following us on LinkedIn.

Investor Relations Contact

ir@fusion-fuel.eu

What project did Fusion Fuel receive approval for from the European Commission?

Fusion Fuel received approval for its HEVO-Portugal project under the IPCEI Hy2Infra program.

Where will the HEVO-Portugal project be developed?

The HEVO-Portugal project will be developed in Sines, Portugal.

How much green hydrogen is the HEVO-Portugal project expected to produce annually?

The HEVO-Portugal project is expected to produce 62,000 tonnes of green hydrogen per annum.

What is the total investment for the HEVO-Portugal project?

The total investment for the HEVO-Portugal project is €650 million.

Where will a portion of the green hydrogen produced be exported to?

A portion of the green hydrogen produced will be exported from the Port of Sines to the Port of Rotterdam in the Netherlands.