Fusion Fuel Announces Al Shola Gas Contracted Engineering Project Portfolio of $5.2 Million Across 87 Projects

Fusion Fuel’s Al Shola Gas secures $5.2M in contracts, with $3.2M revenue imminent.

What the company is saying

Fusion Fuel Green PLC, through its UAE-based subsidiary Al Shola Gas, is highlighting a robust engineering contract portfolio, emphasizing the scale—87 LPG engineering contracts valued at $5.2 million as of October 14, 2026. The company stresses that 74% of this value, or $3.9 million, is already in execution, with $1.0 million recognized as revenue and $4.2 million remaining to be recognized. Management, led by CEO Frederico Figueira de Chaves, frames the narrative around both near-term revenue realization and a growing pipeline, referencing six new subcontracts worth $290,000 and a formal $939,000 work order for the Motor City residential project. The announcement also points to larger ambitions, noting $13.6 million in project proposals under client review and potential recurring utility revenue of $805,000 to $1.02 million annually from key projects, though these are explicitly caveated as not yet secured. The tone is confident but measured, with clear distinctions between realized, contracted, and merely potential revenue streams.

What the data suggests

The numbers confirm a substantial backlog: 87 contracts totaling $5.2 million, with 56 contracts ($3.9 million) already underway and 31 ($1.4 million) awaiting site readiness or approvals. As of September 30, 2026, $1.0 million has been recognized as revenue, with $1.0 million more expected in Q4 2026 and $2.2 million in 2027, totaling $3.2 million to be recognized in the next 15 months. The six new Dubai subcontracts range from $15,500 to $67,500, covering over 215 residential units and an 80-unit commercial kitchen. The Motor City project, now formally ordered at $939,000, has a fixed payment schedule and is the largest single contract moving into execution. Three major contracts (two Motor City, one Terra Heights) account for $2.5 million of the portfolio. Proposals for $13.6 million in new work are pending but not yet awarded. The company projects group revenue of €16–18 million for 2026, up from €14.4 million in 2025, implying 11–25% growth. Most figures are realized or contractually committed, though utility revenue and pipeline proposals remain forward-looking and uncontracted.

Analysis

The announcement provides a detailed breakdown of contract portfolio size, values, and revenue recognition for Al Shola Gas, with most figures supported by specific numbers and timelines. Approximately $1.0 million in revenue has already been recognized, and $3.2 million is expected to be recognized over the next 15 months, indicating near-term execution. However, several claims—such as potential annual utility revenue and the large pipeline of submitted proposals—are forward-looking and not yet realized, with explicit caveats that these are subject to client approval or future events. The consolidated revenue outlook for 2026 is also a projection, not a realized result. No profitability metrics (net income, EBITDA, operating profit) are disclosed, so the true_signal cannot exceed weak_positive. The tone is upbeat but generally proportionate to the operational progress, though some language around 'potential recurring revenue' and 'opportunities to expand' inflates the narrative beyond current evidence.

Risk flags

• ●Execution risk is present for the 31 contracts ($1.4 million) that have not yet commenced, as their start depends on site readiness and external approvals, which may be delayed.
• ●Revenue recognition is subject to project schedules and client-side decisions; historical delays on two projects (commenced in 2021 and 2023) show that timelines can slip due to client or authority approvals.
• ●The $13.6 million in submitted proposals is not yet contracted, so any implied pipeline growth is contingent on client awards that may not materialize or may be delayed.
• ●Potential recurring utility revenue of $805,000 to $1.02 million annually from Motor City, Studio City, and other projects is not yet realized or contractually secured, and the company explicitly cautions that such relationships are not guaranteed.
• ●Payment terms for major contracts, such as Motor City, include 90-day payment cycles and a 10% retention released in stages, which could impact cash flow if project milestones or authority sign-offs are delayed.

Bottom line

Fusion Fuel’s Al Shola Gas has built a sizable and diversified contract portfolio in the UAE, with $5.2 million in engineering contracts and $3.2 million in revenue expected over the next 15 months. The majority of the backlog is already in execution, and the formalization of the $939,000 Motor City project adds near-term revenue certainty. However, a significant portion of the company’s growth narrative relies on unawarded proposals ($13.6 million) and potential utility revenue that is not yet contractually secured. Execution and client-approval risks remain, especially for projects not yet started and for those with long-dated completion targets. Investors should focus on the pace of revenue recognition, conversion of pipeline proposals to signed contracts, and realization of recurring utility revenue. The most important takeaway is that while the near-term revenue outlook is credible and supported by contract data, longer-term growth remains dependent on successful project execution and new contract wins.

Announcement summary

(NASDAQ:HTOO) Fusion Fuel Green PLC announced that its indirect subsidiary, Al Shola Al Modea Gas Distribution L.L.C. (“Al Shola Gas”), had 87 LPG engineering contracts in its contracted engineering project portfolio as of October 14, 2026, with an aggregate contract value of approximately AED 19.2 million ($5.2 million), excluding VAT. Approximately 74% of that value, or AED 14.2 million ($3.9 million), relates to projects on which work has already commenced, while the remaining 31 contracts, representing AED 5.0 million ($1.4 million), are expected to commence as site readiness and approvals permit. The portfolio includes 13 related change orders and six new LPG engineering subcontracts awarded in September 2026, with an anticipated aggregate project value of AED 1.07 million ($290,000). As of September 30, 2026, approximately $1.0 million of the aggregate contracted engineering portfolio had been recognized as revenue, leaving $4.2 million remaining to be recognized. Al Shola Gas expects to recognize approximately $1.0 million of this amount in Q4 2026 and $2.2 million in 2027, totaling $3.2 million over the next 15 months, with the remaining $1.0 million relating to projects with longer schedules. The six new subcontracts in Dubai South, Dubai Hills, Al Quoz Industrial Area 4, and Warsan 4th in Dubai have individual values of $67,500, $65,400, $57,200, $54,500, $30,000, and $15,500, covering more than 215 residential units and an 80-unit commercial cloud kitchen facility. Al Shola Gas received the formal work order for the multi-tower residential development in Motor City, confirming a lump-sum contract value of AED 3.45 million ($939,000), with a payment schedule entitling Al Shola Gas to 60% upon delivery and approval of materials, 35% upon installation and inspection approval, and 5% upon testing, commissioning, authority approval, and handover, all on 90-day payment terms and subject to a 10% retention released in two stages. The Motor City and Studio City projects, together with other properties, represent combined potential annual utility revenue of AED 2.95 million to AED 3.75 million ($805,000 to $1.02 million). The contracted engineering portfolio also includes three contracts on developments with a combined value of AED 9.2 million ($2.5 million): two residential developments in Motor City with contract values of AED 3.95 million ($1.08 million) and AED 3.45 million ($939,000), and the Terra Heights dual-tower residential development in Expo City Dubai with a contract value of AED 1.8 million ($490,000). Fourteen customers have awarded Al Shola Gas multiple contracts, and indicative completion dates for contracts in the portfolio extend through the end of 2028. Al Shola Gas has submitted proposals for new LPG engineering projects with a combined value of AED 50 million ($13.6 million), which remain subject to client evaluation and award. Fusion Fuel expects consolidated revenue of approximately €16 million to €18 million for the full year 2026, compared with approximately €14.4 million in 2025, representing anticipated year-over-year growth of approximately 11% to 25%. The $1.0 million of engineering revenue Al Shola Gas expects to recognize in Q4 2026 is one contributor to that outlook, alongside LPG distribution operations, BrightHy Solutions' contracted projects, and BioSteam Energy's first facility. Frederico Figueira de Chaves is Chief Executive Officer of Fusion Fuel.

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