BrightHy Solutions, a Fusion Fuel (NASDAQ:HTOO) subsidiary, has entered into a non-binding Term Sheet to establish a strategic partnership with an undisclosed green energy technology company. The agreement outlines a planned €30 million investment in hydrogen infrastructure over four years. Notably, the funding will be channeled through special purpose vehicles under a newly formed investment entity, which will be majority-owned by the partner rather than Fusion Fuel.
The collaboration will focus on mid-sized hydrogen infrastructure projects, each typically involving investments between €2 million and €5 million, with some projects possibly reaching up to €10 million. BrightHy Solutions is set to oversee the investment entity through a decade-long management contract, with projects selected based on sustainability criteria and financial performance targets aimed at achieving defined minimum unleveraged returns.
Finalization of the partnership depends on several prerequisites, including legal structuring consultation, successful completion of due diligence, and meeting additional conditions outlined in the Term Sheet. Because this is a non-binding agreement, either party may withdraw, potentially incurring termination fees under specified conditions.
While this initiative could pave the way for expanding BrightHy’s hydrogen solutions, investors should view it as an early-stage development rather than guaranteed capital. The absence of partner disclosure, detailed project plans, or exact return benchmarks points to a preliminary phase. Although BrightHy stands to gain from management fees, the partner’s majority stake in the investment entity limits Fusion Fuel’s share of project capital gains.
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