Fortescue, TES to develop green hydrogen facility in Germany
SUMMARY
TES will import green hydrogen into Germany in the form of renewable natural gas.
By Shardul SharmaPOSTED IN:
Fortescue Future Industries (FFI), a unit of Australia’s Fortescue Metals Group, has signed a collaboration agreement with Tree Energy Solutions (TES) to develop green hydrogen and green energy import facility in Germany, it said on October 5.
The investment of €130mn ($127mn) will be funded by FFI’s unutilised capital commitment. Through the agreement, FFI subsidiary Netherlands Fortescue Future Industries Holdings will invest €30mn to become a shareholder in TES as well as invest €100mn in the construction of the TES terminal in Wilhelmshaven, Germany, and be a major shareholder with a 30% stake in Deutsche Grungas und Energieversorgung, a subsidiary of TES.
The first phase of the project is to jointly develop and invest in the supply of 300,000 metric tons of green hydrogen with final locations being currently agreed, and a financial investment decision targeted in 2023.
The first delivery of green hydrogen into TES’ terminal is anticipated to take place in 2026. Initial collaboration projects will be focused on Australia, Europe, the Middle East and Africa, FFI said.
TES in a separate statement said that it will import green hydrogen in the form of renewable natural gas, which is economical, easy to transport and store. The CO2 will serve as a carrier: when the gas reaches Germany, it will be captured and transported back to the supply location, where the hydrogen is produced, in a circular, closed-loop zero-carbon system.
Recently, TES was selected to develop and implement Germany’s fifth floating storage regasification unit in Wilhelmshaven.
