Good morning, good afternoon, good evening, depending where you are in the world today, and welcome to today's Fusion Fuel Investor presentation. Today we intend to give you a comprehensive update on our company, on our recent developments, as well as on our strategy as we push forward into 2025 and beyond. Firstly, for those of you who are new to the company, Fusion Fuel Green PLC is headquartered out of Dublin, Ireland, and our operations are currently located in Spain and in the United Arab Emirates. We're also publicly listed on the NASDAQ under the ticker HTOO. My name is John-Paul Backwell, or just J.P.. I'm CEO of the company.
I'm joined today by Gavin Jones, our Chief Financial Officer, by Frederico Figueira de Chaves, our Chief Strategy Officer, and Sanjeeb Safir, the Regional Managing Director of Quality Industrial Corp, which is our newly acquired industrial and utilities subsidiary. Today's presentation will start with me introducing the business. I'll be summarizing our recent developments and what they mean for the company regarding positioning, regarding strategy, and regarding our performance going forward. And then I'll be handing over to Gavin, who will dive deeper into the financial performance and the projections before we discuss the two operating subsidiaries, with both Sanjeeb and Frederico addressing our operating gas and hydrogen businesses respectively. I'll then briefly conclude with some investment highlights to recap. So just as we get into it, I'd like to thank you for your time today. I trust you'll find this session informative.
Please note down any questions that you might have. We will provide an email address for you to send them to. As a company, we do have several exciting developments in the works, so we'll certainly be more active with Q&A sessions, with podcasts, with press releases, and the like. I would like to keep you updated with the rapid developments that are taking place in our business. Our presentation today does contain some forward-looking statements, and we do encourage you to read our disclaimer. You can find this presentation and the disclaimer filed publicly and on our website. Let's kick things off. Firstly, yeah, I'd like to kick things off with what I like to call the fast facts.
This section for me is perfect for anyone who wants a quick overview before we dive deeper into the details of our operating businesses and before we share insights into their operations, their synergies, and their financial performance. So firstly, who is Fusion Fuel as a company? We call ourselves, or we consider ourselves, a full-service energy and utility solutions provider with two operating subsidiaries which service the hydrogen and the gas sectors. Our business, as it's currently structured, addresses today's energy requirements through the delivery of gas and the provision of gas services, and we're also strategically positioned for future energy demands through the implementation of green hydrogen projects. So just to clarify, the gas we supply is widely used for cooking, for heating, for hot water systems in homes. It's also used in the likes of aerosols as a refrigerant.
It's prevalent in the chemical, industrial, and agricultural sectors. Therefore, it is an energy source which is in high demand right now, and it's in high demand in the region where we operate, in the United Arab Emirates and in the Gulf region, and that demand is increasing. However, we are also aware as a business that hydrogen, and specifically green hydrogen, is the energy source of the future. So our business possesses the exceptional talents and the experience needed to engineer and implement green hydrogen projects, which we believe will be the energy source of tomorrow. Green hydrogen itself is a clean and sustainable energy source. It's produced without emitting polluting gases. And as the market for green hydrogen grows, it will become more widely used as a fuel source for vehicles, for power generation, for heating, for industrial processes, fertilizers, and much more.
We're well positioned to be part of that growth. We have been restructuring our hydrogen business, and we've cut out the draining heavy cash burn that was driven by the Portuguese entity. We're now building forward with the provision of hydrogen engineering and advisory services for the implementation of green hydrogen projects. We're operating now with massively reduced overheads, but still with a strong project pipeline which should bear fruit into 2025. Fusion Fuel's acquisition of QIND, and I will certainly be providing more information on the transaction shortly, we believe, positions the company for profitable cash flow positive growth. We do now operate from a profitable foundation, and we can confidently deliver our growth strategy following the acquisition.
We do believe that one of the key reasons behind our ability to drive growth as a public company is that with the acquisition of QIND and the consolidation of its financials, we're now NASDAQ compliant with shareholder equity of over $10 million. That is a very positive step forward for us as a business and one which we're certainly going to be building on. Our operating gas business in the Middle East, Al Shola Gas, provides our platform for profitable growth. It was founded over 40 years ago, and it currently delivers gas to nearly 40,000 end customers. Al Shola Gas expects to finish this year with over $14 million in revenue, approximately $2.3 million in net income, and that's around 30% growth over its 2023 performance. The company is certainly growing.
With its current projects in the pipeline and investment into expansion of its vehicle fleet, we expect that business to exceed $25 million in revenue next year and hit its target of $4 million in net income. Leveraging our existing skills and experience in the implementation of green hydrogen projects, our hydrogen subsidiary called Bright Hy aims to be a leading solution provider for the green hydrogen sector. For those who don't know, actually, the name Al Shola means bright. We currently operate with two subsidiaries, and in simple terms, we have Bright Gas and Bright Hydrogen. While our primary focus right now is the integration and consolidation of the group and its aggressive organic growth, we are also in discussions with acquisition targets as we look to expand into the U.S. market, and we look to also further expand in Europe and the Middle East.
So we'll be certainly keeping up to date on our progress in this regard. All right, jumping on to the next slide. So this slide really shows how the company is currently structured. We have the NASDAQ-listed parent company Fusion Fuel, and then we have its two subsidiaries, Bright Hy Solutions and Quality Industrial Corp, QIND, which in turn owns the controlling stake in Al Shola Gas. So with Fusion Fuel, our vision is to be the owner and manager of multiple fast-growing profitable businesses in the industrial and energy sectors. We're certainly committed to driving sustainable growth in tomorrow's energy market by leveraging the demands of today's energy market. And understanding this point for me is really important for investors, in my humble opinion. Many of us genuinely want a clean energy future for our children and for future generations.
However, as long as clean energy solutions aren't in high demand from end customers, it becomes quite challenging for companies that provide these solutions to thrive without government support. So that situation can lead when governments are constantly having to provide subsidies to renewable energy and sustainable energy companies, that situation leads to increased taxes and higher living costs, which creates a cycle that's hard to break. So to ensure a renewable energy company can succeed without relying on subsidies and costly financing, it has to meet today's energy needs while it strategically prepares to lead the transition to a cleaner energy landscape as public demand grows. So that's truly at the heart of what Fusion Fuel is doing today, and I certainly believe it paints an exciting picture for the company's future. As you can see on the right, we have QIND.
It's a publicly listed SEC reporting company with its operating business, Al Shola Gas. QIND provides solutions for the industrial and utility sectors. It's currently offering comprehensive services to the gas sector in the Middle East. And meanwhile, BrightHy Solutions, or Bright Hydrogen Solutions on the left, delivers expertise for implementing green hydrogen projects, primarily focusing on Europe, but also we're exploring opportunities in the Middle East. Its revenue comes from advisory and engineering services, specialized equipment sales, and project services. Now, the Bright Hydrogen team is led by some very experienced professionals. Frederico is certainly going to be explaining more about what makes this team special and why they're a key part of our growth plans going forward.
But the merging of these two subsidiaries under Fusion Fuel is what's crafting an innovative full-service energy and utilities, what I would call powerhouse, that's not only able to thrive today, but is also set for a very bright future ahead. So in terms of that transaction, let's take a look at the recent news and what has brought us to this current position as a company. So on the 26th of November, Fusion Fuel acquired a 69.36% stake in Quality Industrial Corp, or QIND. I mentioned that QIND is publicly traded. It's traded on the OTC markets. It's an SEC reporting company. As I said, it trades under the ticker QIND. And Fusion Fuel is now the majority owner of QIND. For us, this transaction is transformative for the company.
It was completed by both parties primarily due to the significant synergies between the gas and utilities business of QIND and the hydrogen business of Fusion Fuel. These synergies extend beyond the obvious energy sector connections to various operational synergies resulting from this collaboration. For instance, QIND has a team of engineers and designers that can be leveraged by Bright Hy for hydrogen initiatives. And even on the public company side, efficiencies can certainly be realized, for example, with auditors and lawyers, all of which helps reduce our operating costs and enhances our productivity as a company. And then, as I've mentioned a few times already, this transaction provides a profitable platform for us to scale up the Fusion Fuel business globally, and we're already able to be driving this strategy forward.
Very importantly, this transaction makes us NASDAQ compliant regarding our shareholders' equity, and it enables us to deliver value to our shareholders. Just summarizing the transaction for you, for its roughly 70% stake in QIND, Fusion Fuel issued a combination of common and preferred shares. Those preferred shares convert to ordinary shares upon their applicable regulatory and shareholder approvals to ensure the fair valuation of QIND. Fusion Fuel obtained an independent fairness opinion. That fairness opinion supports the transaction. On closing of the transaction, Fusion Fuel is now the majority owner of QIND, as I've said, and it's consolidating its operations and its financials. Simply put, and this is my view, this transaction has turned around a company that was struggling financially and that was facing the risk of being delisted from NASDAQ.
We've cut down on our overhead costs quite significantly, and we've laid a strong, profitable foundation while we've also created valuable synergies with our legacy business. So it's certainly a very exciting shift that empowers us to grow internationally with energy solutions that are not only in demand today, but also sets us on the path to becoming a leader in the clean energy future. Overall, we certainly as management are very confident that this transaction paves the way for Fusion Fuel to drive future growth and value for our shareholders. Right, so moving on to the next slide. This really just sums up our business lines after the QIND transaction. Yes, we're certainly pleased to share that Fusion Fuel now includes the industrial and utility subsidiary as well as its green energy solutions subsidiary. And that's where we are today.
But as I've mentioned before, our vision is to own and nurture multiple fast-growing and profitable companies in the industrial and energy sectors. So we'll certainly be expanding our reach quite aggressively. We'll be starting with Al Shola Gas, which will be expanding into the provision of natural gas to its clients, but we're also looking to grow strategically through acquisitions, for example, in the renewables and upstream gas sectors. So we're certainly not confined to just the two subsidiaries that are shown here on the screen. Our main emphasis currently lies in the organic growth of our gas services and supply business alongside our hydrogen engineering and advisory services business. We've also streamlined our overhead costs, as I've mentioned, with the legacy Fusion business to align with our new commercial strategy of offering a comprehensive strategy or comprehensive range of green energy solutions to our clients.
Ultimately, our company is now very well positioned to serve clients throughout the energy and utilities value chain, delivering both traditional and clean energy solutions. Finally, before I hand over to our CFO, the Fusion Fuel of today, we believe, delivers a powerful and strategic business combination for the future of energy. I'll summarize why I believe this to be the case. We have two complementary operating subsidiaries that create a pathway from today's energy solutions to tomorrow's next generation of carbon-free energy. We possess a near-term profitable bridge through Al Shola Gas, which supports our transition as a company toward cleaner energy. Our hydrogen business can leverage the infrastructure, the distribution channels, the operational expertise, and the resources that are available in our long-standing gas business.
And then our gas distribution network and our relationships will also be utilized to support Bright Hygrogen's growth in the Middle East, where hydrogen solutions are certainly drawing significant investment. And with our large gas client base, we're exploring and capitalizing on substantial opportunities through our shared networks, our shared contacts, and relationships in both business and government. Our combined business now presents a high-growth opportunity that is driven by near-term high demand for LPG, while simultaneously being well-positioned to deliver the hydrogen and energy solutions of the future. And then finally, I'd say we're confident that we've created an energy innovator that provides today's proven and in-demand solutions and also delivers tomorrow's energy solutions. We're not doing this without reliance on endless government subsidies and significant dilutive investments.
That, I believe, makes us a front-runner in the global shift towards cleaner, more sustainable energy in a manner which we believe is appealing to both consumers and investors. So that's it from my side for now. I'll hand over to our CFO, Gavin Jones, and he'll provide an overview of the consolidated financial performance and future projections of the company. After this, Sanjeeb and Frederico will share their insights, and I'll be back at the end to summarize and to conclude. So thanks. Over to you, Gavin.
Thank you, J.P.. Good afternoon or morning to all of you who have joined this investor update presentation. For those of you who are new to Fusion Fuel, my name is Gavin Jones, and I'm the Chief Financial Officer.
This slide sets out the group's financial targets for 2025 and 2026, which consider the hydrogen operating business as well as the recently acquired Quality Industrial Corp. We are anticipating consolidated revenues of EUR 26 million in 2025, of which EUR 24 million will come from Quality Industrial Corp's operating subsidiary, Al Shola Gas, and EUR 2 million coming from Bright Hy. As you may appreciate, the transaction that J.P. has just summarized will result in increased professional fees during the first half of 2025, so we have just called out our estimate of those costs in the 2025 figures. In 2026, the Al Shola Gas entity is forecasting growth of 40%, while the hydrogen entity is forecasting significant growth as 2025 is expected to be a year of developing the offering and securing orders for 2026.
From a Fusion Fuel perspective, the holding company will have a leaner cost base going forward, and we expect certain synergies with Quality Industrial Corp from a public company cost perspective, as J.P. mentioned earlier. As you will see from this slide, we are forecasting a profitable group in 2026. Sanjeeb and Frederico will go into both the Al Shola Gas and Bright Hy entities a little later in the presentation. In May of this year, we received a deficiency notice from NASDAQ regarding our shareholders' equity. Under the listing rules of the NASDAQ Global Market, companies are required to maintain a minimum of $10 million in shareholders' equity. We had 45 days to submit a plan to NASDAQ to regain compliance. On review of our plan, NASDAQ provided us with the maximum extension of 180 days.
As we were unable to provide evidence of recompliance by November 4th, NASDAQ issued a delisting determination. We appealed this decision, and our hearing will be heard early in the new year. Following our decision to appeal, the delisting determination has no immediate impact on the listing of our ordinary shares, which continue to trade on the NASDAQ Global Market under the symbol HTOO. Based on pro forma calculations, management believes that we will regain compliance following the acquisition of Quality Industrial Corp. Going forward, we expect a transfer to the NASDAQ Capital Market, which has lower thresholds for shareholders' equity. The company will make a public announcement once the appeals process has concluded. The purpose of this slide is to provide an updated picture of our shares in issue.
The restricted shares relate to the portion of shares issued to certain Quality Industrial Corp shareholders who receive preferred shares as part of the transaction. These shares require shareholder approval before they can convert to ordinary shares. I will now pass you over to Sanjeeb, who is the Managing Director at Al Shola Gas, for an introduction of the operating business.
Hey, y'all. Thank you, Gavin. This is Sanjeeb Safir, the Managing Director at Al Shola Gas, based in Dubai, UAE. Happy to be presenting the part of Al Shola story to all of you. Al Shola Gas has always been driven by the vision that the founders set forth when the company was started way back in the early 1980s. So our vision always has been to excel in the field that we are, provide the best of systems, always putting high importance to safety and sustainability.
The mission of the company has been to deliver the best of solutions that surpasses our customer requirements. We always ensured that we gave more than what our customers are expecting in terms of safety, security, and the quality of the products that we undertake. The motto of the company is to empower the customers with the best of safety, to create a trust and loyalty that makes us a better and the best option of us, and with all these things, we drive the growth of the company moving forward, so I'll just give you an overview on Al Shola Gas. Al Shola Gas was started by Mr. Safir Ahammed and Mr. Mohammed Hilal in the early 1980s. It's almost we are going to touch four decades in operations in Dubai, U.A.E. We started our business with distribution of LPG cylinders, followed by we developed individual verticals, which are self-sustaining.
At the same time, it puts everything under one umbrella. After the cylinder distribution, then we focus more into the engineering aspect of the gas systems, the LPG systems, wherein we design, develop, install the systems. Following with, as the market has been changing in Dubai, it's a very dynamic market that we have in Dubai. Everyone wants the best of things faster, quicker, and as and how they want it, so we moved into the bulk LPG, wherein the infrastructure of the area changed in such a way that cylinders were getting reduced and the bulk LPG was getting into the picture, and that grew, and we took the right time to make sure that we are part of that growth that Dubai is bringing forward. Following the engineering, the cylinder, the engineering, and the bulk aspect, then we moved on to the utility part of the LPG.
Unlike many countries in Dubai and most of the U.A. E mirates, except for Sharjah, utility, LPG-based utility is all privately developed and managed. So as a private player, we have all the opportunities to reach the best in the market, to provide the best of solution in terms of utility. And utility cooking is something that is required by everyone. Electricity is not a viable option in this country because of the price spectrum between the LPG and the electric part of the things. As and how we started, when we started way back in 1980, we started with three employees and a manager. Today, we have over 140 people working with us from different aspects of our five different standalone verticals.
We are supported by a fantastic updated fleet in terms of the trucks that allows us to procure our LPG, distribute it to our clients, and manage the entire operations, so we have dedicated trucks for the LPG distribution, dedicated bobtails for the bulk LPG, and then we have dedicated stores wherein we have the entire setup for our engineering activities, the storage of the goods and storage of other safety materials, and all these activities are governed by five major authorities of Dubai. To do a proper LPG distribution company in Dubai, you need to be approved by the Dubai Supreme Council, by the Economic Department, by the Civil Defense, by the RTA, and by Dubai Police, so all these things make us so much better in terms of ensuring the safety and the products that we're dealing, keeping in mind the volatility of what LPG is.
This has always made us better, these requirements, the regulations from the authority, and that has really made the company to be one of the leading companies when it comes to safety aspects. I'm very proud to say that in these 40 years of providing service in this country, we have never had to face any serious accidents or mishaps because that is the kind of process and procedures and protocols that's been put in by the company to ensure that our operations that starts from 6:30 A.M. in the morning all the way up to 11:30 P.M. in the evening goes as smooth, as safe as possible. That is an integral part of our day-to-day operations, and that is something which Al Shola Gas does not compromise.
Along with this, we've been certified by the Dubai Civil Defense to ensure that we have the right skill sets, the right manpower to carry out all these works in terms of engineering, in terms of distribution, because all our team members are trained and certified every year, irrespective of how many years they've been working in the company. Every year, the drivers are trained for safe driving capacities. The technicians are trained on all the activities, the welding capacity, how they handle the LPG, how they handle the cylinders, and the maintenance team is, again, trained and verified on their knowledge and update of these things. And most of our technicians, they have undertaken the exams and the training requirements of DCD and all the other authorities. To put more importance to our process and procedures, the company has been ISO certified since 2012.
Our documentation, our process procedures are very well documented and implemented. These are things which are reviewed internally every year to ensure that we are on top of things so that we are never left behind in terms of providing the service to the end user. In all these years, we cater our services recurring to over 40,000 customers, 36,000 to 40,000 customers. Some of the prominent names are detailed below, as you can see on the slide. Some of the major property developers like Emaar, Nakheel, Sobha, Wasl, government entities like RTA, Dubai Government, HKL, Dubai Properties. We are very proud to say that they are our customers and clients, and these are relationships that have spanned well over 20 to 25 years in some cases. Going to individual details, how our activities are differentiated into different verticals.
Centralized gas systems is basically the engineering aspects of our activity, wherein we design, install, maintain, and operate. This is the most common model that has been done for projects, and projects means this could be multi-use buildings, residential, commercial, purely commercial, like shopping centers, malls, industries like our factories, glass factories, then we have schools, hospitals, you name it across the domain. What is required, Al Shola is able to provide a solution for in terms of LPG requirements, and we are one of the leading solution providers in the market right now. On an average, currently, our skill sets and our team strength allows us to hand over up to 6,000 apartments a year, complete testings, commissioned, and ready for operation. The other vertical, the one that the company started with LPG cylinder distribution, this is majority end users.
70% of the sales goes to the individual apartments and the rest of them goes to certain restaurants, small factories, and things like that. Then the bulk gas supply is the sector that is really growing, and this is where we see our more focus that's going to be there. And bulk supply, it could be for buildings, it could be for individual restaurants, individual factories, and anything that requires LPG. Then comes the design and consultation part, wherein the skill sets that have been developed across the last 40 years, some of the engineers that work with us are considered to be the industry leaders. So we do get called by specialized consultants during any special projects come in how the LPG system needs to be designed.
There are some of the very prime projects in Dubai where Al Shola has provided the design and the calculations for an effective and safe LPG system. Supply installation is part of that. Then the last part comes in, whereas the maintenance and support for the entire LPG installation that we do. That is another standard practice that we do that systems that have been installed by us. We ensure that we provide an extended maintenance and support system to ensure the life of each and every system is increased to the maximum potential. Moving towards the market focus, the majority of our focus from in terms of gas, when you think it's mostly the midstream and the downstream wherein downstream is the end users that we use it. So majority of our customers are always the end user that the gas has been provided to.
So we ensure that we develop robust infrastructures. Then we have the facility to mobilize systems from point of origin to these infrastructures to be used by the end users and in the most safe and the most sustainable way possible. Now, moving forward to our growth plans, this is something we have put a lot of energy and effort into it. We have divided, segregated our plans as to an organic growth, which has taken us from a company that on the first day sold three cylinders to the current position where we undertake up to over 1,200 metric tons of LPG distribution, doing over AED 1 million-AED 1.5 million of engineering works every month, cylinder distribution, which is about 150 metric tons, and the maintenance and things like that. So that has been an organic growth that the company has taken.
As part of the organic growth, what we are looking forward to is initial part would be the market expansion to the immediate emirates of Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah, then other part, the next step in our activities are product diversification, wherein apart from LNG, we are looking into other gas forms which are used as fuel. LNG systems are there, CNG systems are there, natural gas systems are there. So these are things which are being very deeply studied internally by the company to ensure that we reach the right product which has the best potential in the market, and along with that thing, we do have cross-selling of our items, wherein with other divisions and things that we have, we are able to cross-sell for projects LPG, which is not required.
Then we can advise them and make that happen along with that thing. Moving from another part of the organic growth that we would want to put into is get into the aspect of trading in specialized products, which is related to LPG system. That is another aspect that we are looking into. In coming into the strategic growth, the primary focus would be mergers and acquisitions of competitor company, which we feel that we can improve our volumes and bring them into the best of practices and safety procedures, which currently they may not be practicing. So that is one thing that we are looking, along with vertical integration and strategic partnership with the government of these Emirates, Dubai, Abu Dhabi, wherein we educate them, we give them options to have new systems in place which are more safe and sustainable.
And especially the U.A.E. government is putting in a lot of effort and money and investments to ensure that the sustainability and the environment friendliness of the country increases dramatically. They have a zero carbon target of 2035 in certain aspects in certain government departments, even as early as 2030. So we could be an integral part of these kinds of developments which are driven by the government. That is very important moving forward. Coming to all these things, what we have in place with the plans to grow, we have a robust target in mind which we are sure to achieve. And we have been doing from our 2020, if you look at our 2023 numbers to 2024 numbers, we would be achieving about 28%-30% growth in revenues as well as in the net profit.
We are looking to hit the targets that were put in place at the beginning of the year. In 2025, with all the plans that we have in place and the teams and the support systems that we are going to have, our robust target is to achieve about $25 million-$26 million in sales and revenues. Accordingly, the net profit also our target is to achieve around 15%-16% of our target revenues. Similarly, for 2026, we are projecting our sales upwards of $35 million with a net profit of, again, between 15%-17% of the sales revenue. These are a few things that we are strongly confident about. As we have achieved the 2024 targets, we are all set forth to achieve the targets for 2025, 2026, and many years ahead. We have a fantastic team.
The management and the guidance and the board teams are so inclusive in all our decision-making. And the kind of experience they bring in, this will ensure that we achieve these robust targets that we have laid out for us. And we are looking forward to make sure that we hit those numbers without fail. Thank you. And I will be handing over this to Frederico, the CEO at BrightH y. Thank you.
Thank you, Sanjeeb. Thank you, everyone, for joining us and watching this video here today. I also want to take this opportunity before I go into our hydrogen solutions business to address some of our Fusion Fuel shareholders that have been with us through quite a long time and realize that it's been around six months since we've last updated you all directly.
Clearly, the last six months have been a pretty busy and tumultuous few months. As you all were aware, we were going through a process of securing capital for many months now. In August, we ended up signing a capital commitment that later on, the investor, unfortunately, breached the timeline of the agreements with us, putting us in a pretty dire cash flow position. Therefore, we needed to strongly and very drastically reposition our business. We addressed the issue head-on. We restructured the hydrogen business significantly. We made the Portuguese entity insolvent. This was the main entity with the industrial activities and the production of the HEVO, as you may all remember. We restructured the business to really focus on the core elements of the hydrogen engineering and hydrogen solutions business that I will go into today.
The result of this was that we actually reduced the operational costs of the group by nearly 90%, between 80% - 90%, so a massive reduction in the operations of the company. This obviously was a fairly painful thing to do, as you can all appreciate, over the last few months with layoffs and needing to restructure entities and also contracts with clients, but certainly necessary given the position that we were in. We were also fortunate enough to enter into the transaction with QIND, allowing us to now have a profitable platform for growth, and as you all heard from Sanjeeb, bringing with it a very interesting business in the gas space that has synergies and a lot of opportunities for cross-pollination with the hydrogen solutions business, so that is a little bit of the overview of the last few months, which were very painful, I would admit.
But we've managed to come out the other end with a significantly restructured business on a profitable platform and now positioned for growth with a much, much, much reduced cash burn rates and operating cost side. So with this, we've also created Bright Hy Solutions. That is our newly company that's being newly formed within Fusion Fuel. It really focuses on our core heritage and repositioning the business that we have all around our hydrogen engineering and our hydrogen solutions business. It's a company that aims to be the main strategic partner for the implementation of hydrogen projects in the future. So through our knowledge and experience from our Fusion Fuel heritage, we're uniquely positioned to capture market share in this industry. There is a scarcity of knowledge and experience, in particular for the installation and the creation of small to medium-sized green hydrogen projects.
Projects tend to be created by developers or users that do not have the in-house ability to execute the projects alone. We spoke about this last time we addressed our shareholders, but 80% of Fusion Fuel's hydrogen pipeline consists of projects and clients that needed a full service provider, someone who could install a plant safely in a timely manner, but was involved right from the conception of the project. This is something that is rare in the industry. Most of the engineering capacity that's out there is for very large, full-sized projects of 100 million plus. In the small to medium-sized project scale, there is a void of experienced players in the market.
So the industry, as you can see there, is starting to take off, and Bright Hy will position itself to capture this growth as one of the few players that has already established and designed various plants today. So we aim to be a partner across the entire value chain, from the design to implementation. As I recall, we were the first company to establish a green hydrogen project in Portugal, the second in Iberia in general, with the only company that has installed multiple projects across Southern Europe to date. So we have a wealth of experience that is unmatched in the small to medium-sized hydrogen plant space. So I want to address a little bit the scope of services.
So as mentioned, we want to be able to service our clients right from the advisory part where a project is conceived, the proposal of the project starts to be born, the engineering studies start to be performed, as well as being able to support them in the procurement and sourcing of equipment. Every hydrogen plant is unique, needing specialized equipment for it, be it the electrolyzer itself, where we have unmatched experience having not only run them, but we also produce electrolyzers. So we know the ins and outs of that industry. But even the compressors, the storage, all of this has to be tailor-made for the projects. And we have a wealth of experience in securing and sourcing and having the right partners for those equipment, all through construction legalization for a project, and then even the O&M when the project is running.
So this is a service that very few can do, and we now can provide the best-in-class solution for every challenge. So as you may recall, as we've said in the past, that not every electrolyzer, not every equipment is fit for every purpose. We now have the ability to source the best-in-class solution for the challenge. Through our history and our expertise, we have a number of Bright Hy is actually born with the benefit of having a very live pipeline already from day one. So the Fusion Fuel pipeline of projects that needed solutions partners can be fully sort of passed on to Bright Hy. So we start right from the beginning with a number of tier one and very successful companies looking for their partners, partners that we've been engaging with for a long time now. So this ranges from the full project services, so EPC.
This goes right from the beginning all the way through to commissioning and installing of the plants, as well as advisory services for simple players who want us to vet what they are doing in this space to see how we can help them with their own solution or with their own execution. This is one of the big benefits of Bright Hy, is it doesn't start at step zero. It gets to build upon all the work that was done at Fusion Fuel throughout these years and hits the road running from day one. We know that we can already create substantial value for these clients, these partners, as we've had a long-standing relationship with them. But also, we can create value for shareholders quickly as this gets up and running right from the start.
One of the obvious lessons learned that we had and being as cautious as we can with our funds, we're looking to keep our operating costs as low as possible, so for this, and especially in the first year or two, we will lean heavily on a sort of partnership model for certain activities and roles, so there are core activities that we will have in-house, and we will look to work with partners in certain activities, so be it sort of control and instrumentation, some process engineers, etc., so we will look to outsource those in line with the number of projects that we will execute, rather than bringing those all in-house on day one. Later on, we can bring more of these activities in-house, but we will start with a partnership model.
Now, the great thing of the QIND transaction and with what Sanjeeb showed before is that we will look to also partner closely with Al Shola with the engineering capabilities they have to see where they can enter into this partnership model. So as much as possible, we will try and cross-pollinate across the group on our engineering capabilities, obviously with the decades of experience that Al Shola has. Then this will be a great foundation for Bright Hy also to build its partnership model and specialist sourcing model from. So now to inform you about the Bright Hy sort of financial targets. So as noted, we hit the ground running with targeting to do around $2 million of revenues right from year one, so from next year, with significantly lower operating costs.
As I mentioned, we've reduced the operating costs of the hydrogen business by around 90% with the restructuring of the business. So we aim to be well and truly on our way to be profitable in 2026. So as you will recall, and as you will know, that hydrogen projects take multiple years to execute. So the numbers you see here are all from pipeline and projects, and this is probability weighted as well from all existing projects that we are already working with clients on. So this is not a desire that we will bring in five projects that we don't know where they come from. This specifically only includes projects that we are well and truly engaged with already and ensures that we have a very solid and conservative base to build the Bright Hy Solutions business from.
So we're very, very much looking forward to this and to this challenge. The revenue targets can also move up as we have not included a significant number of equipment sales. We've really mainly focused on the engineering services for the projects. But if we are, and we expect to be, to also hire to do equipment provision for the projects, those revenue numbers will shift substantially upwards. So it's a very promising start for Bright Hy after what was a rather painful process. Excited now that we have distilled the hydrogen business to this core function and that we can build together with Sanjeeb, J.P., and the rest of the team into what is going to be a, I think, exciting future as this market develops. So with that, I thank everyone for your time and your attention, and I will pass back to J.P. for closing. Thank you.
Thanks for that, Frederico. The company certainly overcomes some significant challenges and is shaping up to be a bright future for Fusion Fuel. So I understand that you've received a lot of information today. So what I'll do is just briefly recap and conclude with a few of Fusion Fuel's investment highlights. We operate a profitable gas business with strong cash flow, and we service nearly 40,000 customers across the Middle East region. Our current operations are in a high-demand sector, and our solid growth trajectory means we have a robust revenue outlook with profits in 2025. Our operating gas business is very well established in Dubai, and the economic boom that is taking place across that Gulf region continues to drive both demand and growth in the gas sector, which we supply. Also, the restructuring of our hydrogen business has drastically reduced our overheads.
With Bright Hy Solutions, we believe we are very well positioned to provide a full suite of clean energy solutions for the future. From that position of strength, we believe we're able to spearhead a sustainable energy transition as we shift towards both natural gas and hydrogen solutions. We're also evaluating and negotiating with acquisition targets in the U.S., in Europe, and in the Middle East. For us, the strategic growth through M&A is very important to bolster onto our organic growth as a company and also to diversify our operations across the energy and utility sectors. Finally, we are committed to delivering both the near-term value drivers and the long-term potential for our investors. I'd like to believe that this presentation clearly shows how we will go about achieving these objectives. I'd like to thank you for your time today.
We certainly appreciate your attention, and we hope you will continue this journey with us as our company unfolds its next chapter and as we actively scale up our business. We'll keep you updated, and we look forward to sharing more of our progress with you soon. So from my side, thanks again, and bye for now.