October 5 , 2022 [Reuters] – Fortescue Metals Group (FMG.AX) said on Wednesday it would more than double the planned capital spending in its green power arm this fiscal year to invest in a hydrogen import facility, with Germany’s Tree Energy Solutions (TES).
The world’s fourth largest iron ore producer said the partnership will help supply 300,000 tonnes of green hydrogen in the initial phase, with a financial investment decision targeted for 2023. The first delivery of hydrogen into the terminal is expected to take place in 2026.
Fortescue will invest 130 million euros ($129.75 million), of which 30 million euros will be in TES and the rest in the facility in Wilhelmshaven, Germany.
The investment will be funded by previously unutilized capital commitments, Fortescue said. It added that the anticipated capital expenditure by Fortescue Future Industries (FFI) in fiscal 2023 is now $230 million, up from $100 mln.
“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, said Fortescue chairman Andrew Forrest.
The Australian iron ore magnate and billionaire plans to turn Fortescue into the world’s biggest green energy group, but critics have warned previously that his projects lack funding detail and the targets are a stretch.
Mark Hutchinson, chief executive of FFI, said the investment supports the deal reached with Germany’s largest energy group E.ON (EONGn.DE) in March this year to ship up to five million tonnes of green hydrogen to Germany by 2030.
At the time, FFI and E.ON did not disclose the volume of investment that was needed to realise the project, but Forrest had said that the five million tonnes of hydrogen would correspond to one-third of the heating energy Germany imports from Russia each year.
TES, backed by Belgian firm AtlasInvest, has plans to build a largest portfolio of hydrogen projects by 2030. read more
($1 = 1.0019 euros)
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