Fusion Fuel Green PLC announced on November 4, 2025 that its majority‑owned joint venture, BioSteam Energy, has started construction and equipment fabrication for a biomass‑powered industrial steam system at a major dairy processing facility in South Africa. The joint venture, formed with Alien Fuel (Proprietary) Limited, entered into definitive agreements on October 16, 2025, and the project is slated to replace a fossil‑fuel boiler with a carbon‑neutral biomass system.
The project will generate verified carbon credits through landfill avoidance and fuel‑switching benefits, aligning with Fusion Fuel’s decarbonisation strategy. Fusion Fuel has committed approximately €480,000 (ZAR 10 million) to the construction and commissioning, with the joint venture contributing the remaining capital. The plant is expected to be commissioned in January 2026 and will begin generating initial revenues in 2026.
John‑Paul Backwell, CEO of Fusion Fuel, said the project “marks the beginning of our South African operations and provides a tangible example of how Fusion Fuel can deploy sustainable energy solutions to deliver measurable emissions reductions in hard‑to‑abate industrial sectors.” The dairy facility, while unnamed in public disclosures, is a key player in South Africa’s consolidated dairy industry, offering a reliable feedstock stream for the biomass system.
Fusion Fuel’s broader financial picture remains challenging. The company reported a 70 % revenue growth for full‑year 2025, driven largely by acquisitions in the LPG sector, but continues to post operating losses and negative cash flows. The South African venture is part of a diversification strategy aimed at creating multiple revenue streams and leveraging engineering expertise beyond green hydrogen. While the project represents a positive operational milestone, investors will weigh it against the company’s ongoing turnaround efforts and balance‑sheet pressures.
The project’s expected commissioning in early 2026 positions Fusion Fuel to capture a growing market for industrial steam solutions in emerging economies, potentially generating recurring revenue streams and enhancing the company’s decarbonisation credentials. However, the capital intensity and the need for local regulatory compliance in South Africa introduce execution risks that the company must manage as it expands its geographic footprint.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.