Fusion Fuel adds LPG bobtail targeting $1.6m annual revenue

Fusion Fuel Green (Nasdaq: HTOO), a Dublin-listed diversified energy platform, has taken delivery of a new liquefied petroleum gas (LPG) bobtail tanker through its UAE subsidiary Al Shola Al Modea Gas Distribution, known as Al Shola Gas. The company says the unit is expected to generate approximately AED 6.0 million, or $1.6 million, in annual recurring revenue once it reaches its target delivery run-rate.

The new 17,800-litre bobtail brings Al Shola Gas's total fleet to 53 vehicles, including three LPG bobtails and ten LPG cylinder trucks. The company says the vehicle should ramp to approximately 200 metric tons of LPG deliveries per month within four to six months of entering service, translating to monthly revenue of AED 400,000 to AED 500,000 ($109,000 to $136,000). A fourth bobtail, smaller in format at approximately 7,000 litres and designed to serve city-centre and congested locations, is currently in production.

Fleet strategy and permit position

Beyond adding revenue capacity, Fusion Fuel says the new unit is designed to reduce Al Shola Gas's dependence on third-party operators during scheduled maintenance or unexpected downtime across the existing fleet. The smaller bobtail on order is intended to broaden the company's addressable customer base by reaching sites where larger tankers face access and manoeuvring constraints.

Separately, Al Shola Gas has secured a Petroleum Products Permit from the Dubai Supreme Council of Energy, following a process the company says took more than eight months. The permit, required under Dubai's Executive Council Resolution No. 85 of 2025, authorises the distribution, transport, sale and storage of LPG, as well as bulk tanker operations. Fusion Fuel's chief executive, Frederico Figueira de Chaves, said the company believes tightening enforcement under Dubai's regulatory framework could reduce non-compliant operators in the market, benefiting fully permitted distributors such as Al Shola Gas when tendering for new contracts.

Market context

LPG distribution in the UAE is a conventional fossil-fuel business, and Fusion Fuel's positioning sits some distance from the green-energy story its original Nasdaq listing implied. The company was founded as a green-hydrogen developer and retains hydrogen and biomass engineering subsidiaries, but Al Shola Gas has become its primary revenue engine. That pivot reflects broader sector dynamics: pure-play green-hydrogen companies have faced sustained capital headwinds since 2023, as cost curves for electrolysis have proved slower to fall than early projections, and many listed developers have had to diversify or consolidate to sustain operations.

LPG itself is classed as a transition fuel in markets where it displaces solid biomass or heavy fuel oil, particularly across industrial and residential end-users in the Gulf and emerging markets. It does not contribute to deep decarbonisation, however, and investors evaluating Fusion Fuel's long-term position will weigh LPG cash generation against the company's stated strategy of growing recurring, cash-generative energy businesses in the UAE, alongside its hydrogen and biomass platforms.

Revenue outlook

All revenue projections cited in the release are forward-looking and conditional on the new bobtail achieving and sustaining its target delivery volume, which the company benchmarks against performance from its existing comparable fleet unit, currently delivering 250 to 325 metric tons per month. Fusion Fuel has not disclosed a contracted customer pipeline, pricing terms, or broader group revenue figures in this release.

Investors will look for confirmation that the new bobtail has reached target run-rate, a delivery date and performance ramp for the fourth vehicle, and any new tender wins supported by the Dubai Supreme Council of Energy permit, as the near-term milestones to watch.