Source: tradingview.com
Fortescue and Tree Energy’s Green Hydrogen Facility
Fortescue announced its Fortescue Future Industries (FFI) has commenced a ‘strategic collaboration’ with German energy developer, Tree Energy Solutions, to develop a ‘world leading’ green hydrogen import facility in Germany.
FFI will fork out US$127 million to develop the project.
This fresh green energy investment will mean FFI’s capital expenditure guidance for FY23 has jumped to US$230 million from a previously announced US$100 million.
FFI’s operating expenditure guidance remains unchanged at US$500 to US$600 million.
FFI and Tree Energy have identified the need to develop and invest in the supply of 300,000 tonnes of green hydrogen across to-be-decided locations, with a financial investment decision to be made next year.
Tree Energy plans to build a portfolio of green energy terminals across the globe, initially beginning with Australia, Europe, the Middle East, and Africa, to enable a smoother green energy supply chain.
The Wilhelmshaven facility is to receive its first green hydrogen delivery in 2026.
Dr Andrew Forrest, FMG’s Executive Chairman, stated:
‘The United Kingdom and Europe urgently need green solutions to replace fossil fuels and this investment will enable Europe to do exactly that. Not in 2050, but in four years from now.
‘From the beginning of FFI, our philosophy was to drive performance across the entire new renewable GH2 value chain while delivering returns to our shareholders. This investment reinforces this commitment and is a significant step forward in FFI’s journey to become one of the world’s largest green energy producers.’
FFI CEO Mark Hutchinson added:
‘This investment supports the delivery of Fortescue’s supply agreement with E.ON, Germany’s largest energy distributor, following our announcement in March this year to supply five million tonnes of green hydrogen to Germany, with supply commencing from mid-decade.’
What Fortescue’s hydrogen dabbling means
The partnership means Fortescue can trade its large-scale renewable energy development experience with TES’s business models and direct access to the European market.
Establishing a smoother green energy supply-chain will allow the partners to cement their commitment to reducing global emissions at a lower cost alternative.
Tree Energy CEO, Marco Alverà said:
‘We are delighted to announce this partnership which marks a new milestone in delivering scalable, affordable green hydrogen as well as securing renewable energy production. This agreement is another stepping stone in building TES as one of the leading hydrogen players in the world to accelerate the energy transition with the most cost-effective, bankable and scalable green alternative to today’s fossil fuels.’
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Regards,
Kiryll Prakapenka,
For Money Morning
