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HTOO: "Green Hydrogen" plant approved/certified in Portugal by EU.
Fusion Fuel Receives Notification of IPCEI Approval from European Commission for 630 MW HEVO-Portugal Project
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.”
Commission approves up to €6.9 billion of State aid by seven Member States for the third Important Project of Common European Interest in the hydrogen value chain
15 February 2024
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_789
UK, I was going to ask you the same question.
THANKS WTM
I wonder what caused the nice rise today?
UK, I got the following response from Fusion Fuel IR:
"Thanks for reaching out. Yes -- the company regained compliance with Nasdaq's $1 bid price requirement on December 28."
UK, I just sent an email to Fusion Fuel IR regarding my NASDAQ compliance question. If/when I get a response, I'll post it.
Repost from PLUG board, courtesy of B_B!
Spain to disburse 900 mln euros for green hydrogen projects
2024-02-07
MADRID-- Spain will allocate nearly 900 million euros ($968 million U.S. dollars) to fund 10 projects for the production, transport and development of renewable hydrogen, Prime Minister Pedro Sanchez announced on Tuesday.
.....
https://www.chinadaily.com.cn/a/202402/07/WS65c2ad0fa3104efcbdaea08c.html
UK, what do you make of the filing this morning?
Form F-3 - Registration statement by foreign private issuers
February 06 2024
https://ih.advfn.com/stock-market/NASDAQ/fusion-fuel-green-HTOO/stock-news/93214693/form-f-3-registration-statement-by-foreign-priva
HI WTM
I havent heard anything, technically they were back in compliance at the end of November
UK, on November 7, 2023 the company received notice from the NASDAQ of non compliance with the $1 minimum share price requirement. They should have receceived a notice of compliance by now, since the share price has recovered above $1 for a while now. Do you know if they did, or why they didn't?
They got an updated analyst price this morning:
UK, any idea what's causing the wild gyrations in share price as of late?
Fusion Fuel - Q3 2023 Update
Fusion-Fuel
438 subscribers
Posted Dec 4, 2023
Form 6-K - Report of foreign issuer
December 28, 2023
https://ih.advfn.com/stock-market/NASDAQ/fusion-fuel-green-HTOO/stock-news/92904856/form-6-k-report-of-foreign-issuer-rules-13a-16
This Report of Foreign Private Issuer on Form 6-K (“Form 6-K”) of Fusion Fuel Green PLC (the “Company”) contains the Company’s unaudited interim condensed consolidated statements of financial position and unaudited condensed consolidated statements of profit or loss and other comprehensive income for the six months ended June 30, 2023 and 2022, which have not been reviewed by the Company’s independent accountants. The Company is providing the unaudited financial statements for the six-month periods ended June 30, 2023 and 2022 for the purpose of meeting the requirements of NASDAQ Listing Rule 5250(c)(2).
This Report on Form 6-K is hereby incorporated by reference into the Company’s registration statements on Form F-3 (File Nos. 333-251990 and 333-264714).
Morokoy, nice post. Welcome to the HTOO board.
On 7 November 2023, Costa resigned following ongoing searches and arrests involving members of his Socialist government in connection with alleged corruption and malfeasance in handling lithium mining and hydrogen projects in the country. The President of Portugal decided to dissolve the parliament and call for early elections to be held in 10 March 2024. Costa will stay as Prime Minister until a new Prime Minister is sworn in following the elections.
Fusion Fuel Green Hosts Third Quarter 2023 Investor Update
Dec 04, 2023
Link to PR https://ir.fusion-fuel.eu/news-releases/news-release-details/fusion-fuel-green-hosts-third-quarter-2023-investor-update
Link to Investor Presentation https://ir.fusion-fuel.eu/static-files/31ea0fa8-d3ac-4a0a-bde3-2fe2c4fe3366
Link to Webcast https://www.bigmarker.com/izigo/Q3-2023-Update-Fusion-Fuel
SABUGO, Portugal, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Fusion Fuel Green plc (NASDAQ: HTOO) ("Fusion Fuel"), an emerging leader in the green hydrogen sector, today announced financial results for the third quarter ended September 30, 2023. The quarterly shareholder letter is available at https://ir.fusion-fuel.eu/financials-filings/earnings-releases
Third Quarter 2023 Highlights
Announced long-term green hydrogen supply contract with a Spanish industrial group?
Strategic partnership with Duferco Energia covering Italy, starting with a 1 MW HEVO-Chain Series NC project?
In negotiations with BGR Energy to install 1 MW HEVO-Chain demonstrator in India in 2024?
Announced strategic partnership with Elemental Clean Fuels covering the North American green hydrogen market
Received order for 300 kW electrolyzer and balance of plant system from leading global building solutions supplier for delivery in 1H 2024
Subsequent Events
Received two orders for 1.25 MW HEVO-Chain green hydrogen systems to be delivered to projects in Portugal in 2024
Signed a strategic financing agreement from Belike Nominees Pty Ltd., a Macquarie Group Company.
Fusion Fuel will host a live conference call and webcast today, December 4, 2023.
Time: 10:00am ET / 3:00pm WEST
Participant Dial-In: +1 (312) 248-9348
Participant ID: 181055
Participant Passcode: 5678
Webcast registration page: https://www.bigmarker.com/izigo/Q3-2023-Update-Fusion-Fuel
The webcast may also be accessed through the Events page on the Fusion Fuel website (www.fusion-fuel.eu). A playback will be available for replay online for a period of time following the call.
About Fusion Fuel Green plc
Fusion Fuel is an emerging 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. For more information, please visit https://www.fusion-fuel.eu
Investor Relations Contact
ir@fusion-fuel.eu
Hydrogen Podcast: Will Spain Overtake Germany As The European Hydrogen Leader? And Green Hydrogen News From Mexico.
Posted 3 hours ago
UK, thanks for the feedback. I'm as pleasently surprised as you are. Earnings report next week, maybe some positive news leaked. Took some of the profits here and added to other clean energy positions I own.
the market seems to really like this financing, or is there other news coming?
this line may also explain market liking things
Fusion Fuel Green Announces Strategic Tranched Financing from Belike Nominees Pty Ltd., a Macquarie Group Company
Nov 27, 2023 6:00 AM EST
https://ir.fusion-fuel.eu/news-releases/news-release-details/fusion-fuel-green-announces-strategic-tranched-financing-belike
DUBLIN, Ireland, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Fusion Fuel Green PLC (Nasdaq: HTOO) (“Fusion Fuel” or the “Company”), an emerging leader in the green hydrogen sector, today announced that it has entered into an agreement with Macquarie Group’s Commodities and Global Markets business (“Macquarie”) for financing of up to $20 million of senior convertible notes (the “Financing”) pursuant to a securities subscription agreement (“Subscription Agreement”), subject to the satisfactions of certain conditions, as further set forth therein. The Financing will be conducted in several tranches based on the specific needs of the Company and the conditions set forth in the Subscription Agreement, with each tranche size, including the initial tranche size, to be determined by mutual agreement of Macquarie and the Company. Although subject to change, based on current market conditions, the initial tranche is not expected to be greater than 10% of the total Financing. Until the conditions precedent as described herein are satisfied or waived, there can be no assurance that any portion of the Financing will be consummated.
Highlights of the Financing
The Financing is expected to support the Company for its near-term objectives and milestones of delivering HEVO solutions to contracted clients and achieving its 2023 revenue guidance and further developing the Company’s project portfolio and the sale of these projects to infrastructure investors, as well as to provide additional funding for general working capital needs.
The Financing will be conducted in multiple tranches in which Macquarie purchases from the Company and the Company issues and sells to Macquarie (a) convertible notes at an issue price equal to 98% of the principal amount of the notes and (b) warrants to purchase such number of the Company’s ordinary shares as shall equal (x) 30% of the aggregate amount funded by Macquarie in consideration for the related convertible notes issued, divided by (y) the initial exercise price of the warrants. The timing and size of each tranche will be mutually agreed upon by Fusion Fuel and Macquarie, subject to the satisfaction of certain closing conditions, and there are no minimum funding obligations. Given the various criteria necessary to consummate the initial and further tranches, the Company continues to consider available financing options that may complement this transaction.
Frederico Figueira de Chaves, CEO of Fusion Fuel, stated, “We are excited to enter into this agreement with Macquarie. The Financing, when consummated, will provide the Company with near-term financing and will allow the team to focus on delivering its near-term objectives and create value for our shareholders.
Details of the Financing
Pursuant to the terms of the Purchase Agreement, Fusion Fuel will issue to Macquarie convertible notes with a term of two years that bear interest at 4% per annum over the Secured Overnight Financing Rate (the “Convertible Notes”) and two-year immediately exercisable warrants (the “Warrants”) to purchase ordinary shares of the Company. For each tranche of Convertible Notes issued, the Company will issue to the holder Warrants to purchase ordinary shares as calculated above, with an exercise price equal to 130% of the Volume Weighted Average Price for the 5 trading days immediately preceding any tranche issuance. The holder will have the right, at its sole option, to convert the Convertible Notes into ordinary shares of the Company, pursuant to the terms and conditions of the Convertible Notes based on a conversion price equal to the higher of (i) Ninety Percent (90%) of the VWAP of the Company’s ordinary shares on a single trading day selected by Macquarie out of the five trading days immediately prior to the conversion date and (ii) $0.20 per ordinary share, subject to adjustment.
Additional information about the Financing, including a copy of the Purchase Agreement, form of Convertible Note and form of Warrant, will be provided in a Report of Foreign Private Issuer on Form 6-K to be filed by Fusion Fuel with the Securities and Exchange Commission and available at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. There can be no assurance that the Company will be able to complete the private placement on the terms described herein or at all.
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.
About Macquarie Group
Macquarie Group Limited (Macquarie) is a global financial services group providing clients with asset management, retail and business banking, wealth management, leasing and asset financing, market access, commodity trading, renewables development, specialist advice, access to capital and principal investment. Founded in 1969, Macquarie employs over 21,000 people in 34 markets. At September 30, 2023, Macquarie had assets under management of €542.5 billion. For further information, visit www.macquarie.com.
Investor Relations Contact
ir@fusion-fuel.eu
Media Contact
fusionfuel@celicourt.uk
Repost from PLUG board, courtesy of B_B!
a cutting-edge green hydrogen electrolyzer that doesn’t work, thanks to a design flaw on the part of American maker Cummins.
Spain and Portugal Spearhead Ambitious Green Hydrogen Plans
Tue, November 21, 2023
The Mediterranean has big dreams of becoming Europe’s clean energy powerhouse, but they have a long way to go before that goal becomes economically and logistically feasible. Between its plentiful sun for solar energy and its considerable existing natural gas infrastructure, which could be repurposed for piping green hydrogen across the region, there is a serious amount of potential. But can they harness it?
.....
What is more, the Spanish government has poured money into developing the sector without first working through the logistics of getting the necessary technology up and running. In this sense, too, Spain is getting a bit ahead of itself. At present, Spain is saddled with a cutting-edge green hydrogen electrolyzer that doesn’t work, thanks to a design flaw on the part of American maker Cummins. As a result, the network of hydrogen-based buses and fuel cells which were designed to run on the hydrogen produced by the electrolyzer also sit dormant, and now parts of the Spanish electorate, as well as those they’re voting into office, seem to be decreasingly interested in pushing the industry forward.
…..
https://finance.yahoo.com/news/spain-portugal-spearhead-ambitious-green-220000836.html
Fusion Fuel Announces Third Quarter 2023 Webcast Date
Nov 21, 2023
https://ir.fusion-fuel.eu/news-releases/news-release-details/fusion-fuel-announces-third-quarter-2023-webcast-date
SABUGO, Portugal, Nov. 21, 2023 (GLOBE NEWSWIRE) -- Fusion Fuel Green plc (NASDAQ: HTOO) announced today that it will be hosting a live conference call and webcast on Monday, December 4, 2023, to discuss third quarter financial results and operational highlights for the green hydrogen solutions company.
Agenda for the Call:
- 3Q23 Highlights & Financial Review
- Market and Commercial Update
- 2023/24 Targets and Revenue Guidance
- Management Q&A
Join the Webcast:
Date: December 4, 2023
Time: 10:00am ET
Participant Dial-In: +1 (312) 248-9348
Participant ID: 181055
Participant Passcode: 5678
Webcast registration page: https://www.bigmarker.com/izigo/Q3-2023-Update-Fusion-Fuel
The webcast may also be accessed through the Events page on the Fusion Fuel website (https://www.fusion-fuel.eu). A playback will be available for replay online for a period following the call.
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
Fusion Fuel Receives Purchase Order from Portuguese Energy Company for 1.25 MW Electrolyzer Facility
Nov 08, 2023
https://ir.fusion-fuel.eu/news-releases/news-release-details/fusion-fuel-receives-purchase-order-portuguese-energy-company
Agreement marks another important milestone in continued commercialization of HEVO-Chain system, advancing hydrogen mobility in northern Portugal
SABUGO, Portugal, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Fusion Fuel (NASDAQ: HTOO) announced today that it has entered into a sales contract with a Portuguese energy company for a 1.25 MW HEVO-Chain Series NC electrolyzer. The system will employ Fusion Fuel’s plug-and-play HEVO™ technology, which uses modular building blocks to deliver green hydrogen solutions tailored to individual customer needs.
The integrated electrolyzer and hydrogen refuelling project was awarded funding by the European Commission through Component 14 of Portugal’s Recovery and Resilience Plan. The facility, which aims to produce, store, and distribute green hydrogen for the light and heavy transport sector in the north of Portugal, is expected to be fully installed and operational before the end of 2024.
Frederico Figueira de Chaves, CEO of Fusion Fuel, stated, “We are thrilled to announce this contract for the sale of a 1.25MW HEVO-Chain system, the second such announcement in as many months, a clear indication of the market's growing confidence in our flexible HEVO architecture and modular approach to deployment, one which enables us to develop fit-for-purpose solutions that meet the evolving needs of the customer. We continue to see significant interest in our HEVO-Chain system for projects of all sizes.”
Pedro Caçorino Dias, Fusion Fuel´s Head of Portugal, noted, “Our ability to design an entire hydrogen plant, in addition to our modular electrolyzer approach, allowed us to execute this agreement in record time, a testament to our cutting-edge technology and our capability to deliver. It also speaks volumes about our client's steadfast commitment to accelerating the energy transition and reducing carbon emissions in Portugal’s transport sector. With this project, we continue to extend our footprint in the hydrogen mobility space, which we believe will be a source of differentiation for us as the market develops over the coming years.”
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
Iberdrola, Accionaplug, Enel Green and more. All companies with pioneering hydrogen projects admitted by the IDAE
The Government published a document with the 81 applications that were admitted, within a first round, in its program in the second call of the H2 PIONEERS program, which has a budget of €150 million. Which companies are among those chosen and where would the project be built? See full list at the bottom of the article.
October 30, 2023
https://energiaestrategica.es/todas-las-empresas-con-proyectos-pioneros-de-hidrogeno-admitidos-por-el-idae/
Last Friday, the Institute for Energy Diversification and Saving (IDAE) published a list of the projects that passed the first phase of admissibility in the second call of its H2 PIONEERS program.
According to this document, about 30 companies were admitted in 81 files that received the green light, while another 20 applications were rejected in this first instance.
It should be remembered that this program had a first call, which received its final resolution at the beginning of this year, in which 19 companies were awarded these subsidies.
This second edition, as in the previous one, has a budget of €150 million, which will be financed by the European Union within the NextGenerationEU program, and administered by IDAE.
Fusion Fuel has three projects:
- H2JORGE, in Aragon
- TOLEDO H2 GREEN, in Castilla-La Mancha
- ZARAGOZA GREEN HYDROGEN HUB, in Aragon
I asked Open AI ChatGPT to guess what guidelines the Treasury Department will impose to qualify for the IRA clean hydrogen production tax credits. I did not get a great response. I continued to probe, and finally came up with a question with a decent answer, shown below. Basically, a phased in approach, like in Europe.
My Question
What specific guidelines would you recommend?
ChatGPT Answer
Crafting specific guidelines requires a detailed understanding of the energy landscape, technological capabilities, and economic considerations. However, here are some specific guidelines that policymakers might consider for implementing a phased approach to power matching for clean hydrogen production:
1. Initial Flexibility: Begin with moderate power matching requirements that allow for flexibility in clean hydrogen production. Consider annual or monthly matching targets initially before moving to more stringent hourly requirements.
2. Incentivize Advanced Technologies: Provide financial incentives, grants, or tax credits for industries adopting advanced technologies that enable precise hourly power matching. This can encourage early adoption and innovation.
3. Research and Development Funding: Allocate funding for research and development projects aimed at improving technologies related to power matching, storage, and grid integration.
4. Stakeholder Consultations: Engage in regular consultations with industry stakeholders to understand their capabilities, challenges, and potential solutions. This collaborative approach can lead to more informed and practical guidelines.
5. Public-Private Partnerships: Foster public-private partnerships to accelerate the deployment of clean hydrogen production technologies and infrastructure, ensuring a coordinated effort between the government and private sector.
6. Review Mechanism: Establish a mechanism for regular reviews of power matching guidelines to assess their effectiveness, consider technological advancements, and adjust requirements accordingly.
7. Transition Support Programs: Implement transition support programs to assist industries in upgrading their infrastructure and processes to meet the evolving power matching standards.
8. Global Alignment: Collaborate with international partners to align power matching standards globally, facilitating consistency and interoperability in the growing clean hydrogen market.
9. Education and Outreach: Conduct educational campaigns to raise awareness about the benefits of power matching, the importance of clean hydrogen production, and the long-term advantages of compliance with evolving standards.
10. Monitoring and Reporting Requirements: Implement robust monitoring and reporting requirements to ensure compliance with power matching guidelines, fostering transparency and accountability within the industry.
These guidelines should be adapted based on ongoing assessments, feedback from stakeholders, and the evolving landscape of clean energy technologies. Additionally, policymakers should consider the unique characteristics of the U.S. energy sector and collaborate with relevant stakeholders for effective implementation.
Form 6-K - Report of foreign issuer
September 19, 2023
https://ih.advfn.com/stock-market/NASDAQ/fusion-fuel-green-HTOO/stock-news/92079620/form-6-k-report-of-foreign-issuer-rules-13a-16#a_003
Letter from Chairperson
Dear Shareholder
Introduction
I am writing to you to outline the background to the proposals to be put forward at the forthcoming Annual General Meeting (“AGM”) of the Company, all of which the board of directors (the “Board” or the “Directors”) considers to be in the best interests of the Company and the shareholders as a whole and are recommending for your approval.
Your attention is drawn to the Notice of the AGM of the Company. The AGM will be held at the offices of our counsel, Arthur Cox LLP, Ten Earlsfort Terrace, Dublin 2, D02 T380, Ireland on 29 September 2023 at 1pm (Dublin time) and the Notice is set out at page 6 of this document. The ordinary business to be transacted at the AGM is set out in proposals 1 to 3 in the Notice of meeting and the special business to be transacted at the AGM is set out in proposals 4 and 5 in the Notice of meeting. These proposals are described further below.
Business Update
I would like to take this opportunity to provide a brief overview of our Company’s progress over the last year and where we stand today.
Much has changed since I penned last year’s Chairman’s letter to Fusion Fuel Green plc shareholders. The green hydrogen sector has continued to evolve in remarkable ways. The passage of the Inflation Reduction Act in the United States was a transformational commitment to the energy transition, creating significant opportunities for companies across the hydrogen value chain. Determined not to be left behind, Europe has followed suit, redoubling its subsidy and regulatory efforts to ensure it plays a leadership role in the green hydrogen economy of the future.
As a result, we’ve seen a surfeit of prominent green hydrogen project announcements in key markets across the globe; however, the steep learning curve has caused growing pains that continue to plague the nascent industry. Despite the strong secular tailwinds, the reality remains that very few projects have successfully transitioned from development to commissioning, and even fewer have managed to sustain commercial operation. Moreover, as the industry matures, the inexperience of some players is beginning to surface, leading to reports of technical challenges and persistent underperformance of electrolyzer technology, which threaten to derail what has been a promising start for the sector.
In this context, I am proud to say that Fusion Fuel remains ahead of the curve. Our core HEVO technology has consistently outperformed its marketed specifications, and we believe its modular PEM architecture unlocks a number of important technical and commercial advantages. Furthermore, the introduction of our HEVO-Chain solution significantly broadens our addressable market and allows us to compete with some of the most prominent names in the green hydrogen industry. We firmly believe that our market-leading technology and differentiated building-block approach will set us apart in this competitive landscape. While challenges lie ahead, there is much for us to take pride in.
Fusion Fuel’s Accomplishments
Commercial Milestones in Portugal and Spain
With the commissioning of our H2Évora demonstrator project in Portugal and our pioneering solar-to-green hydrogen refueling station project for Exolum in Spain, we have achieved two milestones. Despite the relatively small size of these facilities, they are not merely symbolic achievements; they demonstrate our ability to deliver on our commitments and underscore the strength of our team and our technology. Of the four green hydrogen projects that have been commissioned to date in our core markets of Portugal and Spain, ours are the only two in full commercial operation and they continue to exceed performance expectations. While we are disappointed in the extended time it took to progress from construction to commissioning, that timeline has compressed dramatically as we advance along the learning curve. Where H2Évora took 18 months from construction to commissioning, our Exolum project has only required eight months. With the transition to HEVO-Chain, a far more streamlined product, we expect this to shrink further. As one of the few players with hands-on experience in designing and developing the full scope of a green hydrogen production facility, we believe we are uniquely positioned in this market. We are proud of what we have accomplished, and believe we have the blueprint and capabilities to replicate this early success.
Market Expansion in New Geographies
We have expanded our market development efforts into new geographies, including Northern Europe and North America, which aligns with our vision of becoming a global player in the green hydrogen market. We see immense potential in these geographies and are actively working to establish a presence there beginning with small demonstration projects focused on hydrogen mobility and logistics. Strategic and channel partnerships are key enablers of our go-to-market strategy, particularly for regions where we lack a significant operational footprint. We have entered into several foundational partnerships in our core markets of Portugal and Spain, such as those with Toshiba Energy Systems and Toyota Material Handling España. More recently, we have reached high-level terms for a partnership with Duferco Energia to establish a commercial presence in the Italian market, which will commence with the installation of the first-ever HEVO-Chain Series C, a 1 MW containerized system, which we plan to deliver in 2024. We are also in ongoing negotiations with BGR Energy Systems for a 1 MW demonstrator project in India.
Transition to HEVO-Chain
The transition to the HEVO-Chain, our next generation electrolyzer solution, represents another critical milestone. Building on our highly differentiated miniaturized PEM architecture, the HEVO-Chain is a modular, stackable, scalable electrolyzer that retains the advantages of our distributed production approach with a significantly smaller footprint. It can be connected to any source of electricity, greatly expanding our addressable market and unlocking commercial opportunities that were previously out of reach. By applying a building-block approach enabled by our modular architecture, we can deploy bespoke, decentralized hydrogen solutions that allow customers to scale into demand. While we no longer benefit from the recovery of the thermal energy that is one of the advantages offered by the HEVO-Solar, the reduction in complexity and improved performance of the HEVO micro-electrolyzer enables us to achieve market-leading system- and stack-level efficiency, resulting in a lower levelized cost of hydrogen and superior economics for our projects and customers. However, perhaps most importantly, the HEVO-Chain positions us to more effectively navigate the permitting and licensing constraints that proved to be a key hurdle in bringing the HEVO-Solar to market. We truly believe the HEVO-Chain is a game-changer in the world of electrolyzer solutions, offering enhanced performance, scalability, and market reach.
Corporate Governance
In June of this year, the company’s Nominating and Governance Committee (comprised of all the Non-executive Directors of the Board) recommended, and the full Board unanimously approved, elevating Frederico Figueira de Chaves from his previous position as Co-Head to the role of Chief Executive Officer. That represented another step in the evolution of Fusion Fuel from its inception as a private Portuguese company to a global company employing the best practices of corporate governance. At the same time the Nominating and Governance Committee recommended, and the full Board unanimously agreed, that reducing the number of Executive Directors on the Board was in the best interests of the company. Consistent with that approach, Messrs Jaime Silva and Joao Texeira Wahnon made the decision not to stand for re-election to the Board at this Annual General Meeting of shareholders, leaving Mr Figueira de Chaves, CEO of Fusion Fuel Green PLC, as its sole Executive Director.
Yet much remains to be done to ensure the continued viability of our company. We are acutely aware of the liquidity needs of the Company. Rest assured, we are actively exploring multiple avenues to fortify our capital position. Our goal is to extend our financial runway while doing everything we can to safeguard shareholder interests. We are committed to achieving a balance that ensures the long-term sustainability of our company.
In closing, I want to express my gratitude for your support and trust in us. The past year has been a period of growth, innovation, and adversity, but we are excited about the opportunities that lie ahead. We remain committed to our mission of making the energy transition accessible through the development of disruptive green hydrogen solutions and are confident in our ability to achieve our vision and deliver material value to our shareholders.
Board Changes
In accordance with the provisions of Article 161 of the Company’s Articles of Association, the term of service for each of the Directors in Class III terminates at the conclusion of this year’s AGM. Our Class III Directors are Jeffrey E. Schwarz, Jaime Silva, and João Teixeira Wahnon.
Jeffrey E. Schwarz will be seeking re-election at this year’s AGM, as further detailed in Proposal 1 below. Jaime Silva and João Teixeira Wahnon have decided not to stand for re-election.
As Ordinary Business:
Proposal 1 – To re-elect Jeffrey E. Schwarz for a three-year term
In accordance with the provisions of Article 161 of the Company’s Articles of Association, Jeffrey E. Schwarz is required to retire by rotation at the AGM and, being eligible, he is offering himself for re-election. The performance of the aforementioned Director has been formally evaluated and the Board considers that his performance continues to be effective and he demonstrates commitment to his role as a Director.
The biographical details of Jeffrey E. Schwarz are set out in the Annual Report. The Board recommends the re-election of the aforementioned Director.
Proposal 2 – To acknowledge the re-appointment of the statutory auditors
This item is on the agenda to allow the shareholders to acknowledge the re-appointment of KPMG LLP as the statutory auditors of the Company. This item is being put forward as a non-binding advisory proposal because, under the Companies Act 2014, the re-appointment of the auditors is automatic unless they resign or a proposal is put forward to remove them.
Proposal 3 – To authorise the Directors to fix the remuneration of the statutory auditors
This is a proposal authorising the Board to fix the remuneration of the statutory auditors in line with agreed terms of engagement as approved by the Audit Committee.
In addition to the above proposals, the annual meeting will also receive and consider the Company’s Irish statutory financial statements for the fiscal year ended 31 December 2022 and the reports of the directors and auditors thereon. There is no requirement under Irish law that the Irish statutory financial statements be approved by the shareholders, and no such approval will be sought at the annual meeting.
As Special Business:
Proposal 4 – To extend the authorisation of the Directors to allot securities under Irish law
Under Irish law, directors of an Irish public limited company must have authority from the company’s shareholders to issue any shares, including shares which are part of the company’s authorised but unissued share capital. Our current authorisation, provided for in the Company’s Articles of Association, will expire on 31 December 2023. If this proposal is not approved, the Company will have a limited ability to issue new shares after 31 December 2023.
We are not asking you to approve an increase in our authorised share capital or to approve a specific issuance of shares. Instead, approval of this proposal will only grant the Directors the authority to issue up to 20% of the Company’s issued ordinary share capital, with such authority expiring on 31 December 2024 (being 12 months from the expiry of the existing authority provided for in the Company’s Articles of Association).
Granting the Board this authority is a routine matter for public companies incorporated in Ireland and is consistent with Irish market practice. We expect to propose renewal of this authorisation on a regular basis at our annual general meetings in subsequent years.
Proposal 5 – To renew the Directors’ authority to opt out of statutory pre-emption rights under Irish law
Under Irish law, unless otherwise authorised, when an Irish public limited company issues shares for cash, it is required first to offer those shares on the same or more favorable terms to existing shareholders of the company on a pro-rata basis (commonly referred to as the statutory pre-emption right). Our current authorisation, provided for in the Company’s Articles of Association, which granted the Directors the authority to opt-out of the statutory pre-emption rights provision of Irish law, will expire on 31 December 2023. We are therefore proposing to renew the Directors’ authority to opt-out of the statutory pre-emption right on the terms described below.
Similar to the authorisation sought for Proposal 4, this authority is fundamental to our business and, if applicable, will facilitate our ability to fund acquisitions and otherwise raise capital. As with Proposal 4, we are not asking you to approve an increase in our authorised share capital. Instead, approval of these proposals will only grant the Directors the authority to opt out of statutory pre-emption rights when issuing shares for cash, up to a maximum of 20% of the Company’s issued ordinary share capital, with such authority expiring on 31 December 2024 (being 12 months from the expiry of the existing authority provided for in the Company’s Articles of Association). As with Proposal 4, granting the Board this authority is a routine matter for public companies incorporated in Ireland, and we expect to propose renewal of this authorisation on a regular basis at our annual general meetings in subsequent years.
Without the authorisation provided for in Proposal 5, were we to issue shares for cash after 31 December 2023, we would first have to offer those shares on the same or more favorable terms to all of our existing shareholders, which could cause delays in the completion of acquisitions and the raising of capital for our business. This authorisation is required as a matter of Irish law and is not otherwise required for other companies listed on NASDAQ. Accordingly, approval of this resolution would merely place us on equal footing with other NASDAQ-listed companies. Renewal of the Directors’ authorisation to opt out of the pre-emption rights as described above is not contrary to NASDAQ rules and listing standards or with U.S. capital markets practice and governance standards.
75% of the votes cast at the AGM will be required to pass the resolution in Proposal 5. In addition, this proposal is conditioned upon the approval of Proposal 4, as required by Irish law.
Further Action
You may submit your proxy over the Internet by logging on to www.cstproxyvote.com. To log on, you will need your control number which is printed on your proxy card. Online proxy votes must be received no later than 11.59 pm (Eastern Time) on 28 September 2023.
Recommendation
Your Board believes that the proposals to be put forward at the AGM are in the best interests of the Company and its shareholders. Accordingly, your Directors unanimously recommend that you vote in favor of the proposals as they intend to do in respect of all the ordinary shares which can be voted by them.
Yours sincerely
Jeffrey E. Schwarz
Chairman
7 September 2023
Fusion Fuel Receives Purchase Order for 300 kW Electrolyzer and Balance of Plant System from Leading Global Building Solutions Supplier
Sep 27, 2023
https://ir.fusion-fuel.eu/news-releases/news-release-details/fusion-fuel-receives-purchase-order-300-kw-electrolyzer-and
Milestone contract represents first sale of HEVO-Chain technology to replace the use of fossil fuels in the industrial sector
SABUGO, Portugal, Sept. 27, 2023 (GLOBE NEWSWIRE) -- Fusion Fuel (NASDAQ: HTOO), a developer of disruptive green hydrogen solutions, is pleased to announce that it has achieved a significant milestone in the commercialization of its HEVO-Chain system with the signing of a contract with a global leader in innovative and sustainable building solutions, operating in the cement, aggregates and other building materials segments. The client has placed a purchase order for a 300 kW PEM electrolyzer and associated balance of plant equipment. The system will use Fusion Fuel’s plug-and-play HEVO-Chain technology, which employs a building-block approach using modular 20 kW Cubes to deliver green hydrogen solutions tailored to individual customer needs. The project, which will be developed in Spain, is expected to be fully installed and operational in the first half of 2024.
This project will also mark the first deployment of Fusion Fuel’s oxygen capture system, an innovation that will enable the facility to capture both the hydrogen and oxygen released during the electrolysis of water. Eight kilograms of oxygen are produced for each kilogram of hydrogen derived through electrolysis, oxygen which is typically released into the ambient environment. With Fusion Fuel’s oxygen capture system, the client can now further reduce its environmental impact by harnessing this oxygen for other applications.
Frederico Chaves, CEO of Fusion Fuel, stated, “We are thrilled to be partnering with one of the world’s largest cement and building solutions companies, one that is at the forefront of sustainability and decarbonization in a critical and difficult-to-abate area of the industrial economy. We are eager to showcase the advantages of our modular HEVO-Chain system as well as deliver our oxygen capture system for the first time, demonstrating our continuing commitment to sustainability and contributing to our client’s ambitious vision for a greener future.”
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
Media Contact
fusionfuel@celicourt.uk
Fusion Fuel Announces Strategic Partnership with Elemental Clean Fuels, Strengthens Foothold in North American Green Hydrogen Market
Sep 14, 2023
https://ir.fusion-fuel.eu/news-releases/news-release-details/fusion-fuel-announces-strategic-partnership-elemental-clean
DUBLIN, Ireland, Sept. 14, 2023 (GLOBE NEWSWIRE) -- Fusion Fuel Green plc (“Fusion Fuel”), a green hydrogen solutions company, announced today that it has entered into definitive agreements with Elemental Clean Fuels (“Elemental”), a newly formed and funded development company focused on originating and developing clean fuel projects in North America. Elemental is led by Zach Steele and Jason Baran, formerly senior executives at Fusion Fuel, along with Jeff Crone, a former advisor to Fusion Fuel, all of whom have extensive management experience in the energy infrastructure sector in North America. Fusion Fuel is contributing several development assets from its broader project portfolio to Elemental in exchange for a minority equity ownership interest.
In parallel, Fusion Fuel has also entered into a strategic technology partnership with Elemental, granting Fusion Fuel the right to bid on all PEM-based green hydrogen projects in Elemental’s North American pipeline for a period of three years. Elemental has approximately 40 MW in pre-feasibility projects within its pipeline and is currently collaborating with Fusion Fuel on a feasibility study for a 2 MW green hydrogen project for a state utility to be delivered in 2024. This partnership will provide Fusion Fuel with exposure to the emerging North American green hydrogen market, whilst enabling the company to focus its near-term commercial efforts on the Iberian Peninsula and Northern Europe.
Frederico Figueira de Chaves, CEO of Fusion Fuel, commented, “This partnership represents a continuation of the go-to-market strategy we’ve discussed in detail in recent months. We view channel partnerships as an effective means to amplify our presence in new markets. With secured development capital, a pipeline of actionable projects, and leadership with a proven track record, we are confident that Elemental will deliver significant value to our shareholders and be a great complement to the existing Fusion Fuel team. The opportunity to work closely with Zach and Jason once more, executives who we know well and who are familiar with the unique advantages of our HEVO technology, presents a golden opportunity to accelerate the deployment of our HEVO-Chain solution in the North American market and create meaningful opportunities for technology sales.”
Zachary Steele, CEO of Elemental, added, “We are excited and optimistic about our continued collaboration with Fusion Fuel going forward, and are confident that the HEVO-Chain solution will prove to be a valuable product offering for our smaller scale green hydrogen customers in North America over the coming years.”
Jeffrey Schwarz, Chairman of Fusion Fuel, concluded, “Understanding that we can’t be all things to all people, our strategy is to lean into opportunities where we have an edge versus our competition and where we can secure the most attractive return profile for the company and its shareholders: small to midscale projects with grants, strategic land, or offtake contracts. However, we must also ensure we have access to diverse avenues of growth across multiple geographies. This partnership will serve as another powerful tool in our arsenal, providing exposure to actionable projects and broadening our access to commercial opportunities in North America. Importantly, it will not constrain us from independently pursuing development opportunities or collaborating with other prospective partners. We look forward to working with the Elemental team and are excited about the opportunities this partnership will bring as we continue to shape the future of green hydrogen.”
About Fusion Fuel Green plc
Fusion Fuel is an emerging 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. For more information, please visit https://www.fusion-fuel.eu
About Elemental Clean Fuels
Elemental Clean Fuels is a technology agnostic energy development company with a vision to be on the cutting edge of the emerging clean fuel economy in North America by offering solutions that add value to customers, strategic partnerships and projects. ECF seeks to harness our team’s more than 65 years of collective experience developing, financing, managing and operating energy and infrastructure projects to ensure a meaningful positive impact for all our stakeholders. For more information, visit www.elementalcf.com
Investor Relations Contact
Ben Schwarz
ir@fusion-fuel.eu
What is green hydrogen and why is it touted as a clean fuel?
BY SIBI ARASU
September 5, 2023
https://apnews.com/article/green-hydrogen-g20-climate-change-renewable-energy-energy-transition-90271d6c410f16d9a0dace48d13449ee
BENGALURU, India (AP) — Green hydrogen is being touted around the world as a clean energy solution to take the carbon out of high-emitting sectors like transport and industrial manufacturing.
The India-led International Solar Alliance launched the Green Hydrogen Innovation Centre earlier this year, and India itself approved $2.3 billion for the production, use and export of green hydrogen. Global cooperation on green hydrogen manufacturing and supply is expected to be discussed by G-20 leaders at this week’s summit in New Delhi.
WHAT IS GREEN HYDROGEN?
Hydrogen is produced by separating that element from others in molecules where hydrogen occurs. For example, water — well known by its chemical symbol of H20, or two hydrogen atoms and one oxygen atom — can be split into those component atoms through electrolysis.
Hydrogen has been produced and used at scale for over a century, primarily to make fertilizers and plastics and to refine oil. It has mostly been produced using fossil fuels, especially natural gas.
But when the production is powered by renewable energy, the resulting hydrogen is green hydrogen.
The global market for green hydrogen is expected to reach $410 billion by 2030, according to analysts, which would more than double its current market size.
However, critics say the fuel is not always viable at scale and its ‘green’ credentials are determined by the source of energy used to produce it.
WHAT CAN GREEN HYDROGEN BE USED FOR?
Green hydrogen can have a variety of uses in industries such as steelmaking, concrete production and manufacturing chemicals and fertilizers. It can also be used to generate electricity, as a fuel for transport and to heat homes and offices. Today, hydrogen is primarily used in refining petrol and manufacturing fertilizers. While petrol would have no use in a fossil fuel-free world, emissions from making fertilizer — essential to grow crops that feed the world — can be reduced by using green hydrogen.
Francisco Boshell, an energy analyst at the International Renewable Energy Agency in Abu Dhabi, is optimistic about green hydrogen’s role in the transition to clean energy, especially in cases where energy from renewables like solar and wind can’t practically be stored and used via battery — like aviation, shipping and some industrial processes.
He said hydrogen’s volatility — it’s highly flammable and requires special pipelines for safe transport — means most green hydrogen will likely be used close to where it is made.
ARE THERE DOUBTS ABOUT GREEN HYDROGEN?
That flammability plus transport issues limit hydrogen’s use in “dispersed applications” such as residential heating, according to a report by the Energy Transitions Commission, a coalition of energy leaders committed to net-zero emissions by 2050. It also is less efficient than direct electrification as some energy is lost when renewables are converted to hydrogen and then the hydrogen is converted again to power, the report said.
That report noted strong potential for hydrogen as an alternative to batteries for energy storage at large scale and for long periods.
Other studies have questioned the high cost of production, investment risks, greater need for water than other clean power and the lack of international standards that hinders a global market.
Robert Howarth, a professor of ecology and environmental biology at Cornell University in Ithaca, New York, who also sits on New York’s Climate Action Council, said green hydrogen is being oversold in part due to lobbying by the oil and gas industry.
Boshell, of the International Renewable Energy Agency, disagreed. His organization has projected hydrogen demand will grow to 550 million tons by 2050, up from the current 100 million tons.
The International Energy Agency says production of hydrogen is responsible for around 830 million tons of carbon dioxide per year. Boshell said just replacing this so-called gray hydrogen — hydrogen produced from fossil fuels — would ensure a long-term market for green hydrogen.
“The first thing we have to do is start replacing the existing demand for gray hydrogen. And then we can add additional demand and applications of green hydrogen as a fuel for industries, shipping and aviation,” he said.
Another repost from Stocktwits board courtesy of CharlesIngalls.
Fusion Fuel Green PLC (HTOO) Q2 2023 Earnings Call Transcript
Aug. 31, 2023
SA Transcripts
https://seekingalpha.com/article/4632241-fusion-fuel-green-plc-htoo-q2-2023-earnings-call-transcript
Fusion Fuel Green PLC (NASDAQ:HTOO) Q2 2023 Earnings Conference Call August 30, 2023 10:00 AM ET
Company Participants
Benjamin Schwarz - Head of Investor Relations
Gavin Jones - Chief Financial Officer
Frederico Figueira de Chaves - Chief Executive Officer
Benjamin Schwarz
Hello, everyone, and welcome to Fusion Fuel Green's Second Quarter 2023 Investor Update. My name is Benjamin Schwarz, and I'm Head of Investor Relations at Fusion Fuel.
So, we'll begin with the safe harbor statement. I'd like to remind everyone that this call may contain forward-looking statements, including, but not limited to, the company's expectations or predictions of financial and business performance, which are based on numerous assumptions about sales, margins, competitive factors, industry performance, or other factors, which cannot be predicted. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions, and they are not guarantees of performance.
I encourage you to read the disclaimer slide in the investor presentation for a discussion of those risks that may affect our business or may cause our assumptions to prove incorrect. The company is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements whether as a result of new information, future events, or otherwise, except as required by law.
Thank you for joining us today. So, I'll quickly run through our agenda once again. So, I'll kick things off with an overview of Fusion Fuel at a glance. The management team will then present second quarter highlights, financials results, project, commercial updates, before wrapping up with a discussion of our milestones and priorities for the remainder of 2023. We will then open up the floor for facilitated Q&A with the remaining time. As in our previous quarterly calls, questions can either be entered in the chat box in the webcast platform at any point during the next hour, or you can submit your questions to me directly at the Investor Relations mailbox at ir@fusion-fuel.eu.
Okay. So, as always, let's begin with a brief refresher on Fusion Fuel, our value proposition, and our positioning in the green hydrogen sector.
So, our mission is to make the energy transition more accessible through the development and delivery of cost-effective clean hydrogen solutions. Our patented miniaturized PEM electrolyzer, the HEVO, is at the heart of everything we do in all of our products. Its simplified modular architecture is a true differentiator that unlocks multiple sources of advantage, including high throughput production, a scalable building block approach that positions us to create customized fit-for-purpose hydrogen solutions and cost competitive distributed production of hydrogen, mitigating the need for hydrogen distribution infrastructure, a critical and costly bottleneck in the market today.
We've built a robust pipeline of actionable near-term projects in our core market, Southern Europe, with significant grant funding tied to many of those foundational projects that strengthen the economics and derisk the investment case. We're also making promising inroads in new priority markets in Northern Europe and North America, geographies that have been unlocked as a result -- unlocked too as a result of the introduction of our HEVO-Chain solution.
We have a differentiated and synergistic business model that positions us across the value chain. In addition to selling our proprietary electrolyzer solution to third-party customers, we also originate and develop green hydrogen projects with diverse avenues for monetizing that value creation.
And finally, we are poised for a significant growth ramp as the market matures with an extensive long-term project pipeline and a world-class production facility in Portugal, where we're targeting 0.5 gigawatt of electrolysis production by the end -- per annum by the end of 2025.
So, with that, I'll now pass it over to Gavin Jones, CFO of Fusion Fuel, to share some highlights from the second quarter of 2023.
Gavin Jones
Thank you, Ben. Good afternoon or morning to all of you who have joined our second quarter investor update call.
During the second quarter, we were awarded a €2.5 million contract to supply a 550-kilowatt solar to green hydrogen plant by a Spanish government agency called CSIC. CSIC, also known as the Spanish National Research Council, is a public research institution dedicated to promoting innovation, scientific research and technological development. This project will be based in Zaragoza, Spain.
We also published our inaugural ESG report in addition to issuing further invoices to our technology cell customers.
After the end of the second quarter, we finalized the acceptance tests at our Exolum hydrogen plant; signed a long-term green hydrogen offtake contract with a Spanish industrial group; continue to work on a strategic partnership with Duferco to cover the Italian market, starting with a 1-megawatt HEVO-Chain, non-containerized version in Southern Italy; and signed an agreement with Hydrogen Ventures to reach final investment decision on a €20 million project in Portugal by the end of 2023. Frederico will cover these strategic partnerships with Duferco and Hydrogen Ventures in more detail later in the presentation.
We will now move on to the financial results for the second quarter. Please note that all values discussed for in euros, unless stated otherwise.
We recognized no revenue during the second quarter. We invoiced customers a total of €1 million during the quarter, but client invoices or inflows do not always equate to revenue recognition as the related accounting standard sets out a number of criteria that must be met before identified performance obligations within these customer contracts have been satisfied. The items that we have invoiced have been deferred until such time that the performance obligations will be satisfied. For our Exolum project, the key milestone pertaining to revenue recognition is provisional acceptance. As this was achieved during the third quarter, the associated revenues will be booked.
As we continue to transition from HEVO-Solar to HEVO-Chain, we identified a significant portion of our inventory that we do not expect to use on projects utilizing both the non-containerized and containerized version. The monetary value of these components was €7.2 million and we recorded an impairment charge for the full amount during the second quarter. Any inflows received as we dispose and/or recycle these components are expected to be credited against the impairment charge in future periods. We continue to source buyers for these components, but until we have agreements in place, we consider it prudent to write off the full value of such materials. This impairment has been recorded as part of cost of sales.
Our operating cost base decreased for the second consecutive quarter. Excluding the non-recurring €1.4 million expense that was recorded in Q1, we saw a reduction to our personnel-related costs due to a lower headcount when compared to the first quarter. This was coupled with further reductions to travel, administrative and consulting fees, but somewhat offset by increased legal and depreciation charges.
Our quarterly charge relating to our equity incentive plan reduced by €500,000 during the second quarter. This reduction related to the forfeiture of a significant number of instruments, which was offset by new grants during the period. The forfeiture of options resulted in a credit of €1.3 million, which is split between equity for those expenses booked in 2022 and profit and loss for those booked during 2023.
The pre-tax loss for the quarter amounted to €12.4 million, of which approximately €8.1 million related to non-cash items.
Moving to the balance sheet. The increase to property, plant and equipment is driven by two items. The first relates to the booking of new equipment that was invoiced during the quarter for our Benavente production facility. This increased the value of this asset by €4.5 million. The second relates to the recognition of a new land lease for our continued development of our own project pipeline. The inventory balance shown is net of impairment charge of €7.2 million that was recorded during the quarter. Other notable movements include a reduction in VAT as €3.2 million was settled during the quarter; an increase to trade as we book the equipment for Benavente, as mentioned above; and an increase to deferred income as we issued further invoices to customers and received more inflows from our C-5 grant award.
Next slide, please. No ordinary shares were sold through the ATM during the second quarter. Over nine trading days in July and on August 1, we raised $492,000 cumulatively by selling 222,000 ordinary shares at an average price of $2.35 per share. These sales were made on an opportunistic basis when the price of our ordinary shares and related volumes were at a level that we considered appropriate for us to be active in the market. The last sale that we made was at $2.28 per share. Our stock has since fallen to as low as $1.69 without us being active with the ATM.
I think this is the most appropriate moment to discuss our capital position. As we have discussed previously, it's a paramount importance that we raise capital to strengthen our balance sheet and to meaningfully extend our runway, which will enable us to generate revenues as we work towards cash flow self-sufficiency. Our main objective is to ensure we select the financing option that best protects shareholder interests while still meeting the needs of the company.
As a small cap company, the ATM has proven to be the most efficient method of strengthening our capital position as capital market transactions of late have tended to focus on larger cap or privately owned companies. We are in discussions with both existing and prospective capital providers regarding financing solutions to meet the above objective. While we have no firm details to relate to you regarding these financing solutions, we expect to update the market further as our discussions progress.
As part of our Q4 2022 investor update, we issued guidance for 2023 through 2025 for expected operating results. Our 2023 revenue guidance reflected amounts forecasted to be recognized on two of our own projects, both of which were expected to be completed during 2023. For the two projects in question, significant grant funding was awarded to each with the key criteria being that both projects were completed before the end of 2023. Given the licensing and permitting delays experienced to date, it will not be possible for these projects to be completed within the allocated timeframe. As a result of the foregoing, we are providing revised guidance. In our revised guidance for 2023, we have excluded the related revenues and cost of goods sold for these two projects. It's important to note that we consider this to be a delay rather than a reduction. For the two projects in question, we had identified investors for both and have now shifted these investors to other projects in our portfolio that are in advanced stages.
The shift from HEVO-Solar to HEVO-Chain will allow for a more streamlined licensing and permitting process. HEVO-Solar requires larger land plots in addition to requiring a more complex licensing process. Moving some of our own projects to HEVO-Chain should reduce some of the difficulties encountered during 2023 to date. We expect our technology sale revenues of €5 million to remain unchanged and are not revising this initial guidance. We expect our invoicing to customers to be ahead of plan, but our revenues will lag behind due to the nature of our technology sale agreements, where revenue recognition will be back-ended as opposed to over time, which is consistent throughout the industry. Slide 12 of this presentation aims to set out some of the key milestones in a typical technology contract.
Our cost of goods sold has been updated to reflect lower revenues for 2023 and the impairment charges recorded during the second quarter. We have estimated a lower production capacity for 2023, a reduction of 10 megawatts on the initial guidance. The investment in the second production line has been pushed to 2024 due to slower-than-expected client deliveries. We expect to issue a revised guidance for 2024 as part of our Q3 investor update.
I will now pass you over to our CEO, Frederico, who will guide you through the rest of the presentation.
Frederico Figueira de Chaves
Thank you, Gavin, and thank you all for joining us today.
I would like to start by sharing with you the latest developments from the work that's been ongoing throughout this year from Exolum. The project, the first of its kind in Iberia, going from solar energy to green hydrogen straight to a refueling station, all co-located, has completed its acceptance testing phase, and the project has been delivered to the client. In addition, we're proud to know that the HEVO-Solar and the HEVOs within them are producing at a higher rate than their [data sheet] (ph).
In this early stage market, Fusion Fuel has proved itself as having a leading engineering team, able to not only design, but also deliver a full solution to the client, having taken on the oversight of the design, construction, installation and commissioning of the plant. Currently, Fusion Fuel has the only green hydrogen plants currently live in Iberia, and we're working to deliver the third to CSIC. This is an experience level that has proven to have substantial value as we enter the negotiation of future sales contracts.
We now have a brief slide show of the Exolum project, which, as I mentioned, we oversaw every step, bringing together several partners throughout. The project included civil construction, installation of the HEVO-Solar, the installation of the balance of plants, the development of control software and processes, the commissioning of the entire plant. The team worked incredibly hard these months to bring a truly pioneering plant to life. This experience and knowledge are a strong competitive advantage the Fusion Fuel has in the Southern European market.
As we've mentioned several times, we've secured substantial strategic sites and started the development of key green hydrogen projects primarily in Portugal and Spain, but also in the U.S. and Morocco.
Focusing on Portugal and the five key owned projects underway. We continue to move forward with these projects, adding significant value to them as we continue to secure the elements required for their go-live, be it power [payments] (ph), connection lines, local permits or even offtake agreements. These, in addition to the €44 million of grants we have secured already for this portfolio and the €15 million already requested for the Aveiro project, create an enormous portfolio value for the company. This is in addition to the [IPCEI] (ph) project submission, where we are still awaiting to hear a decision on whether it's approved or not. We continue to receive questions and clarification points, which we are answering, but we do not know yet what the timeline for a final decision is.
We are currently negotiating the sale of three of the projects listed here to infrastructure investors. With the successful negotiation of these projects and the transfers of those SPVs, we will be able to secure significant revenue orders for '24 and 2025, as well as recognize some of the value of the stock already with those SPVs.
The Sines I and Azambuja projects alone represent €20 million each of potential revenues for Fusion Fuel given that we're looking to not only deliver the electrolyzer, but similar to CSIC and Exolum, we are looking to develop the entire hydrogen plant, including balance of plant, something that we are able to do as one of the only players to have done so in the last years in this market. Our expectation is to be able to close the negotiations on these projects by year-end.
Projects take a long time to take shape, unfortunately, a lot longer than we expected, but also longer than was ever considered in the various national hydrogen strategies. However, the recent negotiations with several large counterparts on the various projects in our existing portfolio, highlight the value these have for the company. Firstly, to create the backbone for technology sales in future years, and secondly, they enable us to engage with hydrogen offtakers and potential investors in a way that simply supplying the solutions with technology integrator wouldn't allow us to do. With this in mind, our team was busy during June and July in preparing three new solutions for our own projects for the latest rounds in Spanish and Portuguese programs as well as being highly engaged in the submissions for four client projects. If successful, these projects represent nearly 70 megawatts of electrolyzer capacity and around €65 million of potential revenues for Fusion Fuel.
The importance of creating these potential projects is only growing since the announcement of the European Hydrogen Bank earlier this year. As a recap, any project that seeks to benefit from the European Hydrogen Bank cannot receive other forms of support or grants. Therefore, if the project listed here are not successful in securing the grants we are seeking, the work to create these opportunities will not be in vain. We will still be looking to make them a reality by assuming the European Hydrogen Bank auction.
In June of this year, coinciding with the progression of our HEVO-Chain offering, the team began pursuing a more focused effort to secure third-party sales for electrolyzer deliveries. The HEVO-Solar proved to be a difficult product for clients as it required substantial land and a unique and ever-changing licensing landscape. To give an example, just in Portugal, the regulatory requirements for a hydrogen project have substantially changed and have had a lot of different introductions of new processes in the permitting process. This meant that things like our Aveiro projects, we would no longer be able to build them as they are today. This is how fast the pace is changing. We will still implement the HEVO-Solar in certain projects, Exolum and CSIC are examples of those, but it increasingly becomes harder as these things will be on industrial sites and the permitting process is much longer.
The HEVO-Chain solution was [relatively] (ph) our core offering today with its industry-leading efficiency for PEM system is receiving significant traction from projects developed by third parties MRO. We've been transferring the technology used in our own projects to the HEVO-Chain solution gradually. And this is proving substantially easier to advance with the licensing and permitting processes.
Since this transition to the HEVO-Chain, our sales team has already submitted around 40 offers for this new solution. These submissions are often complex, requiring full design specifications for hydrogen projects that go well beyond the supply of the electrolyzer alone. This is where our unique ability to design full project scope with our experience in getting these projects implemented is proving to be a competitive advantage. We have seen recent industry news of troubles inside a hydrogen project, and we believe that experience in executing, designing projects and we're being responsible for projects that are live is a significant differentiator in the years to come.
The sales to third parties have several stages, and we expect to be hearing final technology decisions on several of the offers in the coming months now that the European summer break is coming to a close. A highlight for us in this process has been the offering of our technology for the first project in Northern Europe, which was not possible before the HEVO-Chain solution, and something which we noted in the last update as a strategic priority for us. The reality is that although Southern Europe has enormous potential for green hydrogen, the northern countries in the continent are moving faster in establishing a series of projects in this space. And therefore, it's something we certainly want to participate in.
As noted in the previous slide, the sale of our own projects to infrastructure investors is something that we are actively engaged in and look to conclude before year-end, which will generate significant [confirmed] (ph) revenues for the firm as well as release substantial cash flows given that they will consume significant amount of product currently in our inventory.
We've received several questions on our business model as it differs to some of our competitors. Here, we've laid out the value chain of a green hydrogen plant, starting with the power supply and the electrolyzer system, the engineering, the balance of plant procurement, the construction process, finally leading to green hydrogen being produced and delivered.
For Aveiro and Exolum, as well as for CSIC, Fusion Fuel is responsible for the entire value chain, developing a full and rare experience within our team to be able to deliver this. Going forward, our primary focus on the delivery of the electrolyzer system and, in many cases, their installation and commission.
We will also look to provide engineering services and balance of plant dimensioning and procurement for selected projects and mostly limited to projects in Iberia. These are services that require a thorough understanding of the local regulatory requirements, something we have here, but instead of developing for other markets, we will look to partner -- we'll look for partners with the relative expertise.
Partnerships are a key enabler in our strategy and have a multiplier effect on a limited team and size. In Italy, we are working together with Duferco Energia, a company we have partnered on -- partnered with on two project proposals for Italians plants before to create a commercial partnership to promote the Fusion Fuel technology suites to the Italian market. This is an example of the strategic relationship with -- relationships we are looking to form. While we bring our leading technology to a partner with substantial local operations and knowledge and thereby accelerate our presence in the market beyond what would be possible alone.
The partnership with Duferco kicks-off with a 1-megawatt HEVO-Chain Series C electrolyzer system during 2024 to decarbonize local refinery. This is the first project that we'll be taking a containerized version of HEVO-Chain solution, something we're very excited to deliver.
There are further partnership discussions ongoing, covering new markets such as North America and India, with demonstrated project for Fusion Fuel included. We can't go into them now, but we'll share developments on these exciting discussions as soon as we can. We're working -- we're also working with a large renewable specialist entity for potential funding on some of Fusion Fuel's projects in Europe beyond Portugal. These are projects that have already begun to take shape, but they still require investments for their completion. The green hydrogen world is still in its early stage, and these partnerships are important to help us accelerate our growth while ensuring we keep our cost as low as possible.
We have been able to secure some of the first green hydrogen purchase agreements in Southern Europe. Green hydrogen offtake is still in its early stage and is a critical part of making any green hydrogen project viable. Our experience in negotiating contracts for industrial use, [gas spending and mobility] (ph) cases puts us ahead of the curve when establishing ourselves in these markets.
In addition to these three hydrogen purchase agreements, we've also secured several MoUs for the supply of green hydrogen for projects in our portfolio. The experience we established in the negotiation and framing the first agreement form a critical foundation to finalize these larger contracts, ensuring that the projects in our portfolio have an attractive unlevered IRR for their investors.
Before reaching the last slide of the presentation, I'd like to spend a few moments to dig into what is truly special about the HEVO-Chain offering and the HEVO itself. It is a really important evolution in the PEM market, so bear with me for a moment.
Firstly, we have a market-leading PEM stack efficiency of 47.8 kilowatt hour per kilo and an efficiency at the system level of 51.8 kilowatt hours per kilo. This compares to most peers in around 57-kilowatt hours per kilo, roughly a 10% efficiency advantage. Our system is one of the most modular and scalable of any electrolyzer solution in the market, able to be handled [when] (ph) components and dimensions as small as 20 kilowatts. This allows for a high-scale modularity in building hydrogen plants, but also minimizes the disruption during maintenance processes and during any system issues, reducing the risk of requiring an entire plant to shut down as has been seen in other systems.
One point to highlight, where we've gone through into this detail in the past, we have an industry-leading precious metal utilization. This is the chart you see here on the right. We are currently well below the targeted platinum group metals usage in both the EU Clean Hydrogen Roadmap and the U.S. Department of Energy Roadmap. Critically, we've completed more than 2,000 hours of new HEVOs using a lot of platinum group metals only targeted to reached around 2030 and about one-quarter of the value used by some of our more established PEM competitors. This highlights how truly differentiating the HEVO technology is and the advantages it has in the market.
I'll touch upon this slide briefly, but wanted to keep it in as we always look to highlight where we stand versus what we set out to do at the start of the year. Most of the points have been covered in previous slides, however, I'd like to note that HEVO-Chain is now in full commercial mode. And that for the first time, we've included the capture of oxygen for the electrolysis process for a client for a system delivery at the end of the year. The process of producing 1 kilo of green hydrogen releases 8 time that amount of oxygen, better yet, green oxygen, as no carbon emission were released through its creation. In this first case, the client has used oxygen in their industrial process, and therefore, we're able to add on to the system oxygen capture capabilities. We expect this to be included in more and more client proposals going forward.
Last quarter, we highlighted our strategic priorities, and we want to provide an update now on how we are executing against this. As noted, we have started all-effort push on tech sales with our HEVO-Chain offering. This has resulted in more sales offers going out in the last few months than the previous two years. Importantly, this includes the first proposals of projects in North Europe and in the U.S., both key markets for the green hydrogen industry.
And it's clear to us and to everyone that strengthening our capital position and balance sheet is a priority for the executive team. The very limited detail as Gavin noted that we can provide at this time, we're in advanced discussions with capital providers to strengthen our capital position. We do expect to make significant progress in the business in the coming months, given what I've mentioned before and where we are in project sales and tech sales, which should also put us in a position to take further steps to strengthen our capital without having such a distressed valuation.
As noted, the HEVO-Chain offering is well advanced and commercially ready, and we've been delivering offers for projects up to 5 and 10 megawatts already. It's important to note that the largest PEM electrolyzer in operation today is 20 megawatts only. So the path to going large in this industry is still something that everyone is pursuing. For us, delivering on smaller projects and scaling up gradually is how we intend to reach the delivery of larger projects in the future.
As the company grows and the industry evolves, we've also identified the need to review the structure and size of certain areas and, importantly, that we ensure that our resources are allocated in the most appropriate manner for our strategic goals. This is the process that won't stop, and in the coming months, will lead us to have some refocusing of our efforts and cost reductions where possible. The plan is that we can self-fund pursuing some of the new opportunities that we have identified.
Lastly, regarding strategic partnerships, as highlighted earlier, we're thrilled to be working with Duferco Energia, bringing not only our first 1-megawatt containerized order, but also importantly a plan for commercial coverage of the Italian market. We're pursuing other partnerships to help us grow and bring a multiplier effect to our business and are in very advanced discussions in both Europe and beyond. We can't say more now, but hope to be able to announce some of the items we're working on over the coming weeks.
I'll now ask Gavin and Ben to join me as we open the session for some Q&A. Thank you.
Question-and-Answer Session
A - Benjamin Schwarz
Great. Thanks, Frederico. I've gotten some questions in the e-mail as well as in the chat box. A quick reminder, if you do have additional questions, you can send them to the Investor Relations mailbox at ir@fusion-fuel.eu or enter them into the chat box in the webcast platform.
Okay. So, we'll begin some questions from Chris Tsung at Webber Research. There's a handful of questions on the H2 Pioneers project announcing that confirms €3.3 million in grant funding. How do you plan to fund the remaining €2.5 million of capital investment for that project?
Frederico Figueira de Chaves
Great. Thank you, Ben. So to note, this project is one similar to our Portugal projects. These are own projects that we are looking for infrastructure investors for -- to actually, the owners and the funding partners for these projects. We're already in advanced discussions with a renewable investor for that project. To note, that project is we call Toledo I in the slide of Perte and C-14 project front overview. We're in discussions with that same investor for Toledo I and Toledo II, right? The project has also been changed to HEVO-Chain. So, it is a HEVO-Chain offering as well. Most critically, together, these projects hold critical item was the hydrogen purchase agreement, something we have announced and secured already for that project. So, now we are in the next stage discussions with the investor. I hope that answer the question.
Benjamin Schwarz
Yes, that's right. I think it does. As a follow-up to that, we announced that there are four projects preselected for grant funding as part of the first H2 Pioneers call. Are the remaining three projects still in contention? And if not, how should we think about the viability of those projects?
Frederico Figueira de Chaves
Sure. Thanks, Ben. So of the four, one was awarded, and two we let go, and one has been resubmitted to the new purchase. So that is Toledo II is the actual one that we have resubmitted at present.
Benjamin Schwarz
Great. Thanks. What is the pathway to monetize the approved grants or the secured grants, given that only €6.8 million or so has been invoiced to date? Also, the approved grants decreased quarter-on-quarter from €70 million to roughly €60 million. What -- can you provide some clarity as to what happened there?
Frederico Figueira de Chaves
Sure. I'll tackle this in reverse order. The grants, that reduction of the €10 million are related to, as Gavin mentioned, the two projects that we could not complete due to licensing delays, right? So, even though we have been -- we were not the only ones to suffer this problem. In these government programs, there were 40 hydrogen projects approved. Not a single one was implemented given the delays on the government side. So, we were not unique. But effectively, that matches exactly the decrease in grant value was us formally acknowledging that we will not be pursuing the project. In reality, the grant will only expire at the end of the year, but we already reflecting in the numbers.
So, those -- sorry, yes, the recognizing of the revenues. So, effectively, the grants to support the CapEx expense of the project. So, as we try to sell the projects to investors, they will be the ones who will benefit most of the grant. So there are -- there is a certain amount of the grant funding that we are taking receipt as the current holders of the SPV. This allows us to sell some of our products to that SPV. But for the time, the grant, we do hope to see a decrease in that grant number in our own books as we transfer these SPVs to third-party investors. And so with the moving of the grants to third parties, we'll truly benefit from them, we will also see the contract sales related.
Benjamin Schwarz
Great. Thanks, Frederico. Final question for Chris. On the revised guidance, can you provide some clarity as to how revenue decreases -- expected revenue decreases by €20 million, but net income only decreases by €9 million?
Gavin Jones
Sure. I can take that one, Ben. So, in terms of that revised guidance, again, important just to note the split between technology sales and our own project development sales. So, the cost of sales related to the two projects that I mentioned has fully fallen away. And for those who have been following us, you might remember that as reported in our most recently filed 20-F and our Q1 investor update, we recorded significant onerous contract provisions for our technology sales in December 2022, which effectively under accounting standards requires you to book your best estimate of the loss for those contracts when you first realize that those contracts will be loss making.
So, we recorded provision in December and how that kind of works its way out as you record revenue, you will record the corresponding cost of sales. But as those losses have already been recorded in the income statement, the amount that will be recorded once revenue has been recognized, will actually be significantly lower and if a contract loss provision hadn't been booked in the first instance. So sorry, a bit of a worthy response to that, but hopefully, I've got the message across.
Benjamin Schwarz
Thanks, Gavin. A couple of questions from Erwan Kerouredan at RBC. What are the next steps regarding your product simplification strategy and the perceived phaseout of HEVO-Solar? Should we expect further impairments as part of that transition?
Frederico Figueira de Chaves
So I'll answer the next steps and Gavin, you take the impairment piece. So for us, we have -- we are already moving well along on the HEVO-Chain solution. We've been moving our projects towards the HEVO-Chain offering. So, took the advantage of simplified licensing process that offers us. At this stage, there's no real sort of further requirement for us to do a product simplification strategy. It's more just focusing our efforts on getting the projects transferred, which [then mostly] (ph) to the HEVO-Chain solution.
Gavin, I'll pass to you on the impairment.
Gavin Jones
Yes. Perfect. So, we don't expect any further impairments. But again, we can't be 100% definitive on that. What we have done is taking a pretty rigorous review of everything that we have in inventory. And we feel the number that we booked in this quarter correctly reflects the items that we won't -- we know for sure that we won't use going forward. As I mentioned, we're looking to sell those or recycle or scrap them. So hopefully, there will be inflows in the future.
But in terms of other items in our inventory that we have, as Frederico mentioned, HEVO-Solar is not dead. We still have projects ongoing. So, we will utilize the materials that we have. And our production and R&D team have also done a pretty good job at reviewing the materials to be used for HEVO-Chain, both containerized and non-containerized, and we've been able to utilize many, many components within the inventory. If that process wasn't done, then they would have had to be impaired. And we will continue -- we will be on this journey for the next couple of months until HEVO-Chain becomes a bit more recognized in the market, and then we're actually installing the product. So hopefully, not is the answer based on the review that we've done so far.
Benjamin Schwarz
Thanks, Gavin. Very good. Can you touch on the U.S. strategy? Has the U.S. market been deprioritized in the near term in favor of Northern and Southern Europe?
Frederico Figueira de Chaves
Thanks, Ben. No, absolutely not. So the U.S. market -- the North American markets, to throw in Canada in there as well, is certainly a priority for us. As I noted during my speech, we've been making offers for both Northern European markets as well as North American markets. The IRA is a phenomenal opportunity for everyone in the -- in hydrogen space. Any project that includes our technology can benefit from the $3 tax credit a kilo of hydrogen produced. So, it's certainly a focus. In fact, this is one of the partnership discussions that we are engaged in. So, we look forward to being able to sharing more with you all related to our efforts in North America. But just to know that it is certainly a priority for us.
How we plan to cover that market going forward beyond just the sort of answering for inbound technology requests and ongoing live home projects that were already in flight, I believe it will become clearer as we're able to announce details around our partnerships. So, I will be [vague] (ph), but hope to be able to communicate more in the coming weeks.
Benjamin Schwarz
Great. We'll pivot now to some questions from [Jeffrey Grant with AGP] (ph). What are the remaining steps required to reach FID on the projects with Hydrogen Ventures?
Frederico Figueira de Chaves
Sure. So, the project with Hydrogen Ventures, the one that we are discussing with them. This is a project that we've been -- already we have the licensing of the power grid, we have the power, and we have the hydrogen production land. So, at the moment, this is more around the contractual discussions with Hydrogen Ventures, then doing their review and due diligence on the project, all the project materials, the grant contracts and so. So in terms of FID, these are now the coming months. It's really on investor review of the project more than any particular milestone.
Benjamin Schwarz
Great. Second question concerns the reference made in the second quarter materials for more standardization and rigor in sales efforts. Can you expand on what you mean by that? And what benefit that standardization will have?
Frederico Figueira de Chaves
Sure. Of course. So effectively, when you do HEVO -- this is one of the advantages of HEVO-Chain. When you do a HEVO-Solar project, every single project needs to be completely tailored. The amount of hydrogen produced by HEVO-Solar depends on the local radiation of that site. The topography of the land can change the requirements and so on. So every single proposal needed substantial custom [indiscernible] and custom offering, nearly doing a full project review just to put out an offer. With the HEVO-Chain, we're able to have standard offers. So, we have effectively much more standard building blocks that can be applied anywhere, given that it requires certain amount of land to place the units. This has allowed us to have pretty much from standard designs to standard offer letters, layouts 3D -- 3D layouts, sorry, and so on. This -- the ability to be able to deliver heavy 40-plus offers in a couple of months would certainly not have been possible with HEVO-Solar offering. So that standardization is what we're referring to.
Benjamin Schwarz
Thanks. Moving now to some questions from the audience. What's the status of the HEVO-Solar given the permitting challenges referenced during the quarter? And can you provide some additional commentary on those permitting issues in Portugal and Spain?
Frederico Figueira de Chaves
Sure. So again, on permitting issues in Portugal and Spain related to the type of land and the rules and requirements that each hydrogen project has to go through. So for example, last year, Portugal passed the regulation that was called Simplex that allowed hydro projects to be spread through a number of regulatory and licensing requirements and sort of a licensing-light approach. As of this year, that position was reversed, and that accelerated the process is impossible to actually projects that were pursuing that Simplex system, they've been informed that they need to revert back to the old lengthier regulatory process. So that sort of change of goalposts from the regulators make it very hard for the various projects. It particularly hits the HEVO-Solar because the type and the -- I should say the original regulatory requirements that they now reverted back to the amount of licensing required -- I should say the required licensing hurdles significantly increases the footprint size of the project. So when you're doing a one-hectare project, it's very different when you're doing a 10-hectare project and so on.
So effectively the required licensing process for HEVO-Solar project with any sort of relatively decent size meant that it would immediately hit all the highest hurdles. Again, this is also a development in the regulatory process that caught us by surprise, given that the previous one was only implemented last year effectively changed the -- changed game for HEVO-Solar in these markets. It's not to say that, that applies to Morocco or other markets, but certainly for Portugal and Spain, these were one of the changes. So effectively what we have done is we have separated the hydrogen production from the power production in terms of physical separation, and we transfer the electronics to the electrolyzer. This proves still to be a very cost-effective manner because the HEVO-Chain is actually performing very well, exceptionally well with a very low or I should say very high efficiency, low kilowatt hour requirement per kilo.
Benjamin Schwarz
Thanks, Frederico. Can you provide an update on the Gedisol project which was announced last year?
Frederico Figueira de Chaves
Sure. The Gedisol project and the HEVO-Solar project to be specific, those are the two projects that were impacted by the delays of licensing, as Gavin mentioned. These were the projects that we were expecting to deliver this year, they have been -- we had to change the investors for those projects to other projects in our portfolio.
Benjamin Schwarz
Thanks. When should investors expect some clarity on the company's capital position?
Gavin Jones
So, I think as Frederico mentioned, we are in discussions with various counterparts regarding various different financing solutions. So, it's not appropriate for me to go through in detail right now, but hopefully soon. But again, what I will build on my previous comments is that our goal has always been for us to bridge our finances to cash flow breakeven. We continue to look at all the solutions available to us to protect shareholder value. We don't want to fully fund the business plan on day one, especially given our depressed share price because any significant financing ends up being a dilutive recapitalization of the company, so we must move a caution on these items. So hopefully, I'll provide an update relatively soon.
Frederico, anything to add to that?
Frederico Figueira de Chaves
No, that's right.
Benjamin Schwarz
Thanks, Gavin. Are you in a position to disclose Fusion Fuel's levelized cost of hydrogen from the HEVO-Chain solution? And then from a commercial standpoint, are you seeing customer willingness to pay a premium for green hydrogen?
Frederico Figueira de Chaves
Thanks, Ben. So, on the first point, I'd refer people back to slides we have shared previously where we noted our levelized cost of hydrogen for our HEVO solution. We already at that point in time recognize that levelized cost of hydrogen apply both the HEVO-Solar and the HEVO-Chain. And therefore, even in the slide at that point in time it simply said, HEVO solution. So we have made that public before. We believe it is industry-leading. And on the final levelized cost of hydrogen for any project very much depends on the cost of energy for a project and the load factor. So, it's solar-only or solar and wind. And again, we are seeing phenomenal results for projects we're modeling with solar and wind with the HEVO-Chain. So I would refer back to that.
Ben, sorry, there was a second part to the question.
Benjamin Schwarz
Yes. Just touching on customer willingness to pay a premium for green hydrogen?
Frederico Figueira de Chaves
So absolutely, as we noted, we've been able to close three hydrogen purchase agreement. This is something that is rare in the market and we are effectively seeing that happen more and more. We'll note that the guarantee of origin market is starting to truly take shape in Europe. And we see the first sort of -- I should say, demand and prices of that come out into the market. Those make green hydrogen projects extremely attractive. So, we certainly are seeing that appetite for a certain amount of volume of green hydrogen at a premium.
Benjamin Schwarz
Great question here on how the proposed three pillars regulations being considered in the U.S. would impact Fusion Fuel and aspirations or desire to utilize the $3 PTC, if at all?
I'll just chime in here as I sit here in the U.S. I invite Frederico and Gavin to add. So for those who aren't aware, the three proposed pillars are: temporal matching, so matching energy consumption with clean energy production on an hourly basis; additionality, it's only using installed -- recently installed, I should say, renewable production; and then deliverability, which is using renewables production that is co-located with the hydrogen facility.
Interestingly, those first two pillars are consistent with the delegated acts that were adopted earlier this year by the EU. So we don't -- it doesn't represent a meaningful hurdle for us as we're already ensuring compliance with our project design and definition in our European portfolio.
And then with respect to deliverability, our modular technology is designed for co-location, both with end users as well as with renewables production. So we don't anticipate meaningful changes to our approach to projects in the U.S. going forward.
Anything to add? Otherwise, I'll move on to the next one.
Frederico Figueira de Chaves
Please, Ben.
Benjamin Schwarz
Great. A question here on the status of the IPCEI submission. Has feedback been received? And how does the transition from the HEVO-Solar to HEVO-Chain impact that project, if at all?
Benjamin Schwarz
I'll say, we've been working in forming the -- I'm now speaking generally, not specifically for the IPCEI, but all programs, we've doing the transition from HEVO-Solar to HEVO-Chain in a coordinated manner to ensure that this doesn't cause problems to the different fundings and awards that have been granted. The IPCEI project, as I mentioned in my notes, we continue to await to final decision. We have been receiving questions pretty much continuously on projects throughout the last months. And we eagerly await the decision. No expectation on timing, sorry. We do not have nor received indication as to when the timing would be.
Benjamin Schwarz
Great. Thanks. Perhaps a question for Gavin. How are you thinking about reducing fixed costs, given the commercial challenges and revised revenue guidance discussed during the call?
Gavin Jones
Yes. So, we have embarked on a rigorous review of our cost base like from cost of materials to general operating costs. All costs are being considered. And I think it's a paramount importance for us to ensure that our cost base matches as much the reduction in the inflows, so that we can continue to be an efficient entity and meet our milestones as quickly as possible.
Benjamin Schwarz
Thanks, Gavin. What is the status of -- Frederico, you alluded to this earlier, but what is the status of the U.S. strategy given the departures of the previous co-Presidents of Fusion Fuel USA? And do you plan to hire new leadership at any point?
Frederico Figueira de Chaves
As mentioned, the U.S. recognizes definitely a core market for us. We've mentioned in the past that we've had several projects that we are pursuing there. We are actively engaged in partnership discussions for the U.S. market, which I hope will bring some clarity to that question. I will just leave everyone with a note that, yes, the U.S. market is a priority for us. And yes, we do intend to have coverage and work together with local partners to make most of the opportunity set there in the America. We have already also have been looking at the starting the process of licensing our HEVO-Chain solution to also be -- have all the required licenses for sale in the U.S. So, it's certainly very much in the -- in our strategic priority list.
Benjamin Schwarz
Thanks. With respect to the new information on BGR in India, what are the drivers of that project or Indian aspirations given the notable difference in the subsidy and grant environment between India and Europe and North America?
Frederico Figueira de Chaves
So, to note, India does have substantial hydrogen project support and also hydrogen technology support, making it an attractive market for future. This is why we already talked about the partnership with BGR Energy. It goes beyond just the demonstrated plant. It needs to be seen in context of a broader effort for the Indian market. Given those discussions and what the activities being done there are on BGR side and not on our side. I'm not going to go into the specifics of those projects, but just to note that it is in the context of a broader effort and attractiveness that we see in the Indian market.
Benjamin Schwarz
Thanks. Gavin, a question here from Torkjel Jordbakke at Fearnley Securities. Can you just help just contextualize a bit more of the €20 million reduction in revenue guidance for 2023? Is that due to grants not being recognized as revenue or due to delayed commissioning? Or perhaps just elaborate a little bit more on that?
Gavin Jones
Sure. Thanks, Ben. So the €20 million reduction is purely because of the two projects, so the HEVO-Solar and the Gedisol projects that will no longer go ahead in 2023. And so the revenue that would have been recognized on those contracts would have related to the electrolyzers, the HEVOs that we would have sold to those projects once investors have basically taken control of the special purpose vehicles who will develop the project, okay?
So, not related to grants other than the fact that because the grants required the projects to be completed in 2023. I think [indiscernible] because the project couldn't be completed in 2023, the grants were no longer relevant. They couldn't be drawn down. So, it was more a timing issue that the project couldn't be completed for us to recognize the revenue as opposed to grants not being recognized.
Frederico Figueira de Chaves
Gavin, I'll just also note that the -- one of the projects that was impacted was the HEVO-Solar project and the investor counterpart for that was Hydrogen Ventures. It is by coincidence that we have simply now moved Hydrogen Ventures to the Azambuja project. So effectively, the concept, the use case, everything remains the same. It is simply a change of site in the discussions. So, this is why we are well advanced and we believe that those contracts can be closed by year-end. This is an evolution of the efforts that we're already making with them with a change of location rather than a whole new discussion.
Benjamin Schwarz
Thanks, Frederico. Last question before we close here. It relates to strategic partnerships more broadly, but there was a question around whether the company is considering a partnership or collaboration with companies like J.C. Bamford given their stated desire to be a leader in hydrogen-powered heavy-duty equipment?
Frederico Figueira de Chaves
Just for us, we're looking at a broad spectrum of partnerships. As we noted before, we have the partnership with Toshiba in the R&D development and maintaining our leading position in that platinum group metals. We discussed with the Duferco Energia today a partnership on commercial coverage for the Italian market. I mentioned before a European partnership to fund and develop some of projects in our portfolio. So, we are looking at a number of them and specific users like industrial users or heavy users of hydrogen are included in that. I'm not going to speak about specific names and so on as you -- it's understandable. But yes, we have various types of partnership being engaged in.
Benjamin Schwarz
Thanks, Frederico. So that will do it for our second quarter webcast. Thanks to everyone who joined. If you have additional questions or if you'd like to speak with myself or with management, please feel free to reach out to me and the IR team at ir@fusion-fuel.eu, and we look forward to seeing you all again at our next update.
Gavin Jones
Thank you, all.
Frederico Figueira de Chaves
Thank you.
Repost from Stocktwits board, courtesy of CharlesIngalls.
Fusion Fuel - Q2 2023 Update
Fusion-Fuel
427 subscribers
462 views Aug 30, 2023
Repost from PLUG board, courtesy of B_B!.
ITM Power: Challenged Hydrogen Player – Seeking Alpha
August 31, 2023
https://hydrogen-central.com/itm-power-challenged-hydrogen-player-seeking-alpha/
We present our note on ITM Power (OTCPK:ITMPF), a pure-play hydrogen company. We issue a Sell rating due to ITM Power’s execution challenges, sluggish turnaround, and long-term commoditization risks. While multiples have substantially contracted from peak levels in early 2021, we find ITM’s valuation still expensive. We will provide a brief introduction to the company, analyze its recent performance, and lay out our investment case and valuation.
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Investment Thesis And Valuation
ITM’s present market capitalization of £555 million, and EV of £200 million implies 14x midpoint sales guidance 2024, vs 3.4x EV/Consensus Sales for peer McPhy, 3.0x for Plug Power, <1x for Fusion Fuel Green, and 6.7x for Nel. Rolling the numbers forward to FY2025, the valuation of ITM stands out as the most expensive once again, by a wide margin.
We expect a significant growth of electrolyzer sales in the following years driven by the push to decarbonize hard-to-abate sectors, however, we find the current valuation expensive, especially given the competitive backdrop of the industry and turnaround challenges of ITM.
As with Nel, for the purpose of our valuation exercise, we assume a 15% target EBITDA margin as the company matures. This margin range could be on the high-end, given the issues discussed above, and ITM has a lot to prove in terms of executing its turnaround plan.
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MD, welcome to the HTOO board. Do you think we have hit bottom, or do we go lower? How much lower can it go?
Link to Q2 2023 Quarterly Update to Shareholders https://ir.fusion-fuel.eu/static-files/c7567983-198e-48da-990c-9d4dbdbd2b8d
August 30 2023
Following are the closing remarks from the Management Letter.
Closing
The upcoming months promise a series of critical events for our company, including the closing of ongoing tech and project sales processes, as well as the finalization of live partnership discussions currently underway. With the continued commercialization of our market-leading HEVO-Chain offering, and the momentum we are building within our sales process, we believe we have established a strong foundation for the years ahead.
We recognize the vital importance of fortifying our capital position, but given our current undervaluation, it is important to note that we will continue to employ a measured and judicious approach in evaluating potential financing solutions. With the recognition of more significant revenues later this year, the anticipated resolution of our short-term liquidity concerns, and the potential for substantial orders for 2024 and 2025, we expect a substantial correction to our current valuation, bringing it more in line with the immense opportunity that we believe is not fully reflected in our share price at present.
UK, agree, thanks for the feedback.
Hmm nothing on Bakersfield/US plant ?
was hoping for a bit more but like all hydrogn companies things take longer , FIDs take longer, permits takke longer, grants take longer as this is so new
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