What’s the latest on Fortescue Future Industries and green hydrogen?

A group of children dressed in green are holding a globe up in relation to climate change.

Image Source: Getty Images

Fortescue Future Industries (FFI) business within Fortescue Metals Group Limited (ASX: FMG) has made several strides when it comes to green hydrogen.

FFI seeks to take a global leadership position in renewable energy and green products and has a vision to make green hydrogen the most globally traded seaborne commodity in the world.

Hydrogen agreement in the UK

With a lot of action happening around the climate conference, COP26, Fortescue Future Industries has signed an agreement to become the largest supplier of green hydrogen to the UK with a multi-billion pound contract with construction giant JC Bamford Excavators (JCB) and Ryze Hydrogen.

JCB and Ryze will buy 10% of FFI’s global production of green hydrogen under a signed memorandum of understanding.

FFI’s hydrogen production is expected to grow to 15 million tonnes of green hydrogen by 2030 and accelerate to 50 million tonnes per year in the next decade.

Under the partnership, FFI will lead green hydrogen production and logistics to the UK, while JCB and Ryze will manage the distribution of green hydrogen and the development of customer demand in the UK.

Fortescue Future Industries said the deal was “strongly backed” and that JCB called it a “major step forward”.

An extended procurement agreement will also be evaluated to supply green hydrogen to the European market, and the parties have agreed to evaluate cooperation opportunities to accelerate the demand for green hydrogen and establish green hydrogen and green industrial production centers.

What projects are JCB and Ryze working on?

Jo Bamford, who Fortescue Future Industries said is widely regarded as Britain’s green hydrogen champion, is the founder of Ryze and the owner of Wrightbus. Ryze builds Britain’s first network of green hydrogen production facilities, while Wrightbus built the world’s first hydrogen double-decker.

FFI quoted the JCB chairman, Lord Bamford, saying:

This is an important step towards getting green hydrogen to the customer. It’s fine to have an engine powered by green hydrogen, but it’s not good if customers can not get green hydrogen to burn their machines. This is a major step forward towards making green hydrogen a viable solution.

At best, hydrogen produced from fossil fuels is promoted as a transitional fuel, but its production causes more pollution than it saves. This agreement shows that green hydrogen does not need to be ‘converted’ via fossil fuel hydrogen. Its production can be started immediately to meet the needs of all mobility. I have asked Andrew to give me right away that he has the capacity and he has said yes.

How much does this planet want?

FFI chairman Dr Andrew Forrest explained that the reduction in greenhouse gas emissions associated with replacing fossil fuels with just two million tonnes of green hydrogen is equivalent to taking over 8 million cars off the road, equivalent to around a quarter of the UK’s entire fleet.

Dr Forrest also said:

Our agreement signals the first major shift in the global commercial landscape from fossil fuels to the right, practical, implementable solution, which is green hydrogen.

Fortescue Future Industries has announced a number of other initiatives this year, including the construction of a global green energy production center in Gladstone, Queensland. The first phase of development is an electrolysis plant with an initial capacity of two gigawatts.

Leave a Comment