Hydrogen technology and project development company Fusion Fuel has signed a long-term deal to supply green hydrogen from its 2.5MW project in Toledo to a major Spanish industrial group for the decarbonisation of an off-grid facility.

Under the offtake deal, the company’s first in Spain, Fusion Fuel will supply 111.5t/yr to “one of Spain’s most prominent companies”. No further details about the terms of the deal were released by Fusion Fuel, which has offices in Ireland and Portugal, and listed on the Nasdaq stock exchange in 2020. 

The deal marks a milestone in the pre-FID development of the Toledo project, which Fusion Fuel aims to construct in 2024, the company said. Difficulties securing long-term offtake deals have hampered the progression of green hydrogen projects to FID in all regions.

“For us to move the needle in decarbonisation, we also need to address legacy industrial segments” Esteban, Fusion Fuel

“We are excited to announce this agreement with a fellow pioneering company in the green hydrogen energy transition, in particular, because this project involves the decarbonisation of an off-grid project, an application for which our modular technology and decentralised approach is uniquely well-suited,” said Javier Esteban, CEO of Fusion Fuel.

“We have highlighted our focus on emergent use-cases for hydrogen, but for us to move the needle in decarbonisation, we also need to address legacy industrial segments as well.”

The breakthrough for Fusion Fuel in Spain comes after it secured two offtake deals for its green hydrogen projects in Portugal earlier in 2023. In March it signed a ten-year offtake contract with European developer Hydrogen Ventures for 30t/yr, with the first deliveries expected in the fourth quarter.  The hydrogen will be produced at the company’s projects in Evora, Portugal, where Fusion Fuel is expanding its production capacity to roughly 50t/yr by year end.

In January Fusion Fuel signed an offtake agreement with Portuguese natural gas utility Dourogas for green hydrogen to be blended within the Portuguese natural gas grid.

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Author: Stuart Penson