Nasdaq-listed green hydrogen firm Fusion Fuel has signed a deal to buy 69.36% of Dubai-headquartered Quality Industrial Corp (QIND), in a pivot away from H2 and into fossil gas in the Middle East.
QIND is the majority owner of Al Shola Gas, which supplies liquid petroleum gas (LPG) systems to a range of customers in the United Arab Emirates.
According to a filing with the US Securities and Exchange Commission, the near-70% stake in QIND is valued at $21.8m.
Once the deal is closed, Fusion Fuel will then issue QIND 19.99% of its ordinary shares, as well as more than four million convertible preferred shares, giving the Dubai-based firm a major stake in the company while diluting shares.
However, Fusion Fuel is currently trading at $0.34 per share and currently faces delisting from Nasdaq due to a lack of compliance with a requirement that companies on the exchange have a minimum $10m in equity, although the firm has applied for a hearing.
Hydrogen Insight has reached out for further details on the deal with QIND, which is still subject to regulatory approval.
Fusion Fuel had also announced last week that its Portuguese subsidiary, which had been developing a 630MW green hydrogen project in Sines designated an Important Project of Common European Interest, had filed for insolvency after an investor failed to deliver on a promised $33.5m investment.
"While the green hydrogen market has developed more slowly than anticipated, the demand for our engineering and advisory services remains strong,” said Fusion Fuel’s CEO Frederico Figueira de Chaves.
“By acquiring QIND, we’re establishing a profitable foundation that will allow us to meet today’s market needs while being positioned for the longer-term growth opportunities we see in the clean hydrogen sector.”
Fusion Fuel has designed a kilowatt-scale proton exchange membrane (PEM) electrolyser, HEVO, which Figueira de Chaves suggests could be part of Al Shola Gas’ offering along with other hydrogen engineering services.
“By reorienting our business around hydrogen engineering and advisory services, we are leveraging our core strengths to better service our customers while positioning ourselves for continued growth as the renewable energy market matures,” the CEO added.
