Fusion of Dilute A_L Lattice Models

The fusion procedure is implemented for the dilute $A_L$ lattice models and a fusion hierarchy of functional equations with an $su(3)$ structure is derived for the fused transfer matrices. We also present the Bethe ansatz equations for the dilute $A_L$ lattice models and discuss their connection with the fusion hierarchy. The solution of the fusion hierarchy for the eigenvalue spectra of the dilute $A_L$ lattice models will be presented in a subsequent paper.