Australian energy firm Fortescue Future Industries (FFI) has signed a preliminary deal to supply German materials manufacturer Covestro with 100,000t/yr of green hydrogen.

The deal is non-binding, but the firms hope to formalise it into a concrete supply arrangement when possible.

Covestro uses grey hydrogen as a feedstock in the manufacture of advanced polymers. The firm has committed itself to completely transition towards the use of fossil-free raw materials. The finalised deal could reduce the firm’s CO₂ emissions by 900,000t/yr.

A recent report released by non-governmental organisation Beyond Plastics suggests plastics will release more greenhouse gas emissions than coal plants in the US by 2030.

Regional deliveries

The deliveries are earmarked for three potential locations—Asia, North America and Europe—and could start by 2024, potentially in the form of green ammonia.

15mn t/yr – FFI’s targeted production of green hydrogen in 2030

“We look forward to working with Covestro to supply their green hydrogen needs and collaborating with Germany to enable it to become the world leader in global decarbonisation, green hydrogen and ammonia,” says FFI chairman Andrew Forrest.

FFI is the green energy subsidiary of Australian iron ore miner Fortescue Metals Group, which has earmarked 10pc of net profits for the unit to explore green hydrogen projects in Australia, Argentina, Jordan and Papua New Guinea.

FFI’s ambition is to grow its green hydrogen production to 15mn t/yr of green hydrogen by 2030, accelerating to 50mn t/yr by 2040.

The firm recently designed and built its own pressurised alkaline electrolyser.

It is part of a coalition of  firms—known as the Green Hydrogen Catapult—that have announced a commitment to develop 45GW of green hydrogen electrolysers with secured financing by 2026, with commissioning targeted for 2027.

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Author: Tom Young