- FFI and E.ON will jointly explore supply of up to 5 million tons green hydrogen to Europe by 2030
- Green hydrogen will be produced using FFI’s assets in Australia and elsewhere in the world
- Supply will be made possible through E.ON in the countries it is operating in including Germany and the Netherlands
Australia’s Fortescue Future Industries (FFI) and Germany’s E.ON have entered a memorandum of understanding (MoU) to deliver up to 5 million tons of green hydrogen (GH2) to Europe by 2030 with an aim to become the largest green renewable hydrogen supplier and distributor to the continent.
Green hydrogen under the arrangement will be powered by renewable energy in Australia and FFI’s other planned global projects, and distributed to E.ON. It will help decarbonize thousands of medium-sized enterprises in Germany and the Netherlands along with other European cities and communities that source electricity from E.ON.
The duo pointed out that this amount of green hydrogen is equal to close to 1/3rd of calorific energy Germany imports from Russia, a reliance which the country and all of Europe is currently making efforts to reduce.
Under the agreement signed, both the companies—in collaboration with their governments—will undertake research and study partnership, followed by detailed documentation and requisite steps related to supply.
German electricity utility E.ON’s CEO Leo Birnbaum termed the partnership as forming a ‘hydrogen bridge’ from Australia to Germany and the Netherlands. E.ON said it is foreseeing a rapidly increasing demand for green hydrogen especially in the industrial Mittelstand client base in the regions it serves.
FFI has been investing into partnerships for green hydrogen supply with various industries and in diverse regions. Calling the partnership with E.ON a decisive step forward in its journey to become one of the world’s largest green energy producers, the CEO of FFI parent group, Fortescue Metals Group (FMG), Elizabeth Gaines said, “We are rapidly establishing the building blocks across Australia and globally that will allow us to develop and fully integrate our world leading green technologies, manufacturing capabilities and green energy generation and distribution.”
Recently, an analysis by Rystad Energy pointed out the boost to green hydrogen in Europe in the wake of Russian invasion on Ukraine. Analysts believe that the continent is on track to produce 3 million tons of green hydrogen annually by 2030, but with REPowerEU it needs to aim for 15 million tons (see Russian Invasion Fueling Green Hydrogen).