Fusion Fuel Green PLC (HTOO) announced Monday that its wholly-owned subsidiary has partnered with a green energy technologies provider to create Bright Hydrogen Holding Company Limited, a dedicated investment vehicle for industrial-scale hydrogen projects. The new platform comes with a significant commitment: up to 30 million euros (roughly $33 million) in funding from the partner.

How The Deal Works

The structure is designed to spread risk and reduce the capital burden that typically makes green hydrogen projects difficult to finance. Under the investment and funding agreement, capital will be deployed in up to three tranches of 10 million euros each, subject to project approvals and governance oversight. Think of it as unlocking funding in stages rather than betting everything upfront.

BrightHy Solutions, the Fusion Fuel subsidiary, has been appointed as the exclusive manager responsible for development and project execution across the entire platform and its subsidiaries. The agreements formalize what started as a non-binding term sheet into a structured investment platform that combines BrightHy Solutions' technical and commercial expertise with long-term financing.

Frederico Figueira de Chaves, CEO of BrightHy Solutions, described the arrangement as a phased investment model designed specifically for green hydrogen projects. The approach reduces upfront capital requirements at the project level, with funding deployed in stages as milestones are approved. He called it "a novel solution for green hydrogen projects" that helps industrial players advance their decarbonization strategies without overwhelming capital commitments.

Platform Structure And Revenue

Here's where it gets interesting from a business model perspective. Bright Hydrogen Holding will be wholly owned by the Partner and serve as the holding company for a portfolio of project-specific vehicles. BrightHy Solutions handles the heavy lifting: sourcing opportunities, evaluating prospects, and developing projects.

Capital deployment isn't automatic. Each project must be approved by Bright Hydrogen Holding's investment committee and board, which includes at least one Partner-appointed director. This governance structure ensures the funding partner has meaningful oversight over where their money goes.

BrightHy Solutions expects to generate revenue in multiple ways. As asset manager, it will earn an annual management fee plus a performance fee on returns above a predetermined hurdle rate, contingent on successful financing and project execution. The subsidiary may also generate additional revenue by serving as the EPC (engineering, procurement, and construction) contractor under separate project agreements.

First Project Already Lined Up

The platform isn't just theoretical. The first approved project is already in the pipeline: a green hydrogen production facility that will supply an industrial cement operator in Spain. Construction is expected to begin in the first quarter of 2026, giving the market a concrete timeline to watch.

HTOO Price Action: Fusion Fuel Green shares were down 3.58% at $3.770 at the time of publication on Monday.