The firm announced it would be taking a 70% stake in Dubai-headquartered Quality Industrial Corp. (QIND), a gas supply and services firm specialised in consulting, designing, supplying, installing and maintaining liquefied petroleum gas (LPG) systems.
Fusion Fuel said it had signed a binding agreement to acquire the majority share in QIND from its controlling shareholders as it builds out a “full-service energy engineering business, combining capabilities in both the traditional and clean energy sectors.”
However, the company revealed last week that its Portuguese subsidiary was filing for insolvency, having been left high and dry by an investor who didn’t pay $33.5m for shares.
In light of the developments, to fund the deal, Fusion Fuel will issue 19.99% of its shares to QIND’s current shareholders.
Following shareholder approval for the conversion of preferred shares, QIND’s shareholders are expected to gain a 70% controlling stake in Fusion Fuel, effectively positioning the transaction as a strategic realignment and a shift in ownership control.
QIND’s CEO, John-Paul Backwell, will also be joining Fusion Fuel’s board.
The company said following the subsidiary filing for insolvency, its management viewed the QIND deal as an “opportunity to recalibrate its business strategy to better align with current market conditions.”
A statement by Fusion Fuel said, “In the near term, the Company will focus on enhancing its hydrogen engineering and advisory offerings, where it is uniquely positioned to deliver high-value solutions with low CAPEX and a highly scalable business model while prioritising the integration of the newly acquired gas services business.”
The company’s CEO, Frederico Figueria de Chaves, added that despite slow momentum in the green hydrogen market, demand for Fusion Fuel’s engineering and advisory services “remains strong.”
“By acquiring QIND, we’re establishing a profitable foundation that will allow us to meet today’s market needs while being positioned for the longer-term growth opportunities we see in the clean hydrogen sector.”
Fusion Fuel had been positioning itself as a front runner in southern European green hydrogen. Having secured funding from the Portuguese state, as well as bloc-wide initiatives, the company has been developing a 630MW HEVO-Portugal project in Sines.
Expected to produce 62,000 tonnes of hydrogen annually, it was selected as one of the 33 projects under the European Commission’s Important Projects of Common European Interest (IPCEI) Hy2Infra programme.
