As the world enters a new year loaded with potential to develop the renewable energy sector, a new development has emerged that promises to increase the standing of the hydrogen market on the global energy stage. Fusion Fuel has unveiled a new hydrogen investment vehicle that will provide upwards of €30 million for funding in the European rollout of hydrogen production.
Fusion Fuel has established a new company to advance the hydrogen market
Fusion Fuel has established the Bright Hydrogen Holding Company as a dedicated investment platform for the hydrogen sector, enabling continued investments in the renewable energy market over the coming years. BrightHy Solutions, a wholly-owned subsidiary of Fusion Fuel, will play a crucial role in the new company.
The milestone marks a crucial step in the advancement of the hydrogen sector as it moves from the previously announced non-binding term sheet to a financing platform structure. This covers all the relevant aspects of investing in production, such as legal, governance, and funding frameworks.
The renewable energy market is set to reach for the stars this year
Under the new agreement, BrightHy Solutions will act as the exclusive manager and development partner for the standalone investment vehicle. Experts have noted that the new company aims to leverage the substantial expertise of BrightHy Solutions in the hydrogen market through a long-term investment platform specifically designed to advance the hydrogen production market.
The new investment platform is a step in the right direction
There can be no doubt that the international energy market is in a constant state of evolution. Emissions have devastated the environment, leading to a wave of new clean energy projects being developed across the international energy market. This has become a necessity to meet clean energy targets.
The new documents that define the company that BrightHy Solutions will manage cover a range of factors, including but not limited to:
- A shared power purchase agreement that will be led by BrightHy Solutions
- A substantial investment framework that will inject upwards of €30 million for the hydrogen sector through three installments of €10 million each.
- A comprehensive management service contract that BrightHy Solutions will undertake, positioning the new company as the driver for hydrogen production on the European continent.
The €30 million capital investment will be deployed across three phases and will only be provided once greenlit by Bright Hydrogen Holding’s investment committee and board. The first project that will be financed by Bright Hydrogen Holding will be a green hydrogen facility in Spain.
“This is a significant milestone for all parties. By introducing a phased investment approach for green hydrogen projects that aims to lower upfront capital obligations at the project company level, with funding released in tranches as projects are approved, we believe we are pioneering a novel solution for green hydrogen projects and supporting industrial companies to execute their decarbonization efforts.” – Frederico Figueira de Chaves, CEO of BrightHy Solutions
As industry experts have warned the European Union that it needs to reform its renewable energy investment frameworks to meet clean energy targets by the end of the decade, Bright Hydrogen Holding Company is a step in the right direction for the European continent.
New hydrogen discoveries are reshaping the global energy market
With the overwhelming need to diversify the international energy market becoming a top priority, a new era of clean energy generation is unfolding this year. Several nations have discovered vast troves of naturally occurring hydrogen right beneath our feet, such as the Monzón white hydrogen discovery in the Alps. Hydrogen will undoubtedly fuel our collective future as the most viable clean energy resource that the world needs more of.
