Hydrogen Future Industries PLC (HFI), a developer of a proprietary wind-based green hydrogen production system, has announced a significant licensing and territory agreement to deploy its technology in the Republic of Ireland.
This will be facilitated through a newly established Irish entity, Hydrogen Future Industries (Ireland) Ltd (HFI Ireland).
HFI Ireland aims to develop a pilot hydrogen production system in Ireland to showcase the production of cost-effective green hydrogen.
Agreement Details and Equity Structure
HFI’s wholly owned subsidiary, HFI IP Holdings Ltd, has granted HFI Ireland an exclusive territory license for up to 20 years.
In return, HFI will receive a license fee of up to €2,250,000 over the license term (including any extensions) and an initial 30% equity interest in HFI Ireland.
This equity interest will increase to 40% if HFI Ireland secures at least €1 million in funding for the development of a pilot energy system.
HFI Ireland’s Mission and Technology
HFI Ireland’s objective is to commercialize HFI’s innovative system, including wind turbines and electrolysers, within Ireland. It aims to construct and operate wind turbine farms for hydrogen generation, storage, sale, and distribution within the territory.
The system’s unique features include a smart hydraulic drive that enhances efficiency and lowers energy production costs.
This enables energy generation across a wider range of wind speeds. Notably, the turbine’s ability to be raised and lowered for optimal wind capture reduces maintenance, installation, permitting, and approval lead times.
The system is designed to cater to the needs of remote off-grid communities or energy users, alleviating the strain on existing national grid infrastructure.
Ireland’s Hydrogen Strategy and Funding Opportunities
The Irish government has outlined a National Hydrogen Strategy focused on developing a domestic hydrogen sector.
This strategy emphasizes decarbonization, energy security, and industrial opportunities. Given this favorable policy environment, HFI Ireland’s management believes there are substantial opportunities to secure government support and other funding sources to accelerate the business’s development in Ireland.
HFI plans to provide HFI Ireland with completed front-end engineering designs to facilitate applications for government grants, private equity, and EIIS funding.
License Terms and Structure
An exclusive territorial license has also been granted to HFI Ireland through HFI’s IP holding company, HFI IP Holdings Ltd. Key aspects of the license include:
- HFI will receive an aggregate license fee of €750,000 from HFI Ireland during the initial 10-year period, payable in equal annual installments.
- HFI Ireland has the option to extend the exclusive license for another 10 years for an additional fee of €1.5 million, payable in equal annual installments.
- The license permits the purchase, assembly, manufacture, sale, and development of HFI’s proprietary wind-based green hydrogen production systems, including wind turbines, electrolysers, and hydrogen creation and storage.
Board Composition and Leadership
As per the shareholder agreement, HFI has the right to appoint two directors to the board of HFI Ireland, joining its two existing Irish directors, Katie Campbell and James Campbell.
Katie Campbell brings over 14 years of experience as a global IT executive, while James Campbell is a seasoned commercial solicitor with extensive expertise in the technology, energy, and property sectors.
Looking Ahead
Daniel Maling, Chief Commercial Officer, highlighted the energy crisis in Ireland driven by the growing demand from data centers.
He emphasized the political will to unlock new renewable energy sources and the central role of hydrogen infrastructure in Ireland’s energy transition.
Maling also pointed out the suitability of the HFI system for data centers, industry, and agriculture, providing a unique opportunity for self-supplied renewable energy.
Neil Ritson, Chairman, underscored the licensing deal as further validation of HFI’s intellectual property and its significance in the renewable energy sector. He expressed optimism about identifying specific project opportunities and securing non-dilutive financing in Ireland.