On Friday, Fusion Fuel Green PLC (NASD: HTOO) had been moving up in the after-hours trading market with its share prices seeing a noticeable increase of 3.05%. At last check, the shares were trading at $4.05, which is a result of the company entering into a landmark agreement.
Which agreement has HTOO entered into?
In an announcement last week, Fusion Fuel (HTOO) announced it had signed an offtake agreement with Portuguese natural gas utility Dourogás for green hydrogen produced at HTOO’s projects in Portugal. This is the first offtake contract of Fusion Fuel to blend green hydrogen into the Portuguese natural gas grid, and a unique agreement to support Portugal’s decarbonization efforts. By 2030, Portugal plans to blend 15% hydrogen into its natural gas distribution network and add 2 GW of electrolyzer capacity to its hydroelectric plants.
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HTOO’s GreenGas project in Evora will produce the first hydrogen for blending. Upon completion of the facility in 2023, roughly 40 tonnes of green hydrogen will be produced per year. Dourogás expects to use this hydrogen in its domestic, industrial, and mobility NGV segments, in which they lead the market. The largest gas distribution network in Portugal, Galp Gás Natural Distribuiço, recently renamed to Floene, expects to build the infrastructure to enable blending in the grid.
A formal execution ceremony was held at Fusion Fuel’s Benavente electrolyzer factory on January 25 to welcome Dourogás and Floene executives. Through this agreement, HTOO reached an important milestone in its hydrogen economy in Portugal. To date, this is the first large-scale green hydrogen offtake agreement for HTOO in Portugal, and it signals a commitment across the value chain to build a liquid green hydrogen market.
Where will HTOO go from here?
The partnership will help Fusion Fuel (HTOO) strengthen its position in the industrial decarbonization space. It will also lay the groundwork for Portugal to achieve its national hydrogen strategy goals it set two years ago. As an energy innovator and sustainability company with a broad service network, Dourogás makes an ideal partner for HTOO in this initiative. Furthermore, HTOO will continue to strengthen its partnership with Dourogás and explore other areas of collaboration, including hydrogen mobility.