Fortescue Future Industries (FFI) and Covestro plan to enter into a long-term agreement to supply green hydrogen and its derivatives, including green ammonia.
Under the MoU, FFI will supply up to 100k tonnes/year of green hydrogen (GH2) to Covestro starting as early as 2024. The arrangement will enable Covestro to reduce greenhouse gas emissions by up to 900k tonnes of CO2 annually by replacing grey hydrogen and its derivatives with GH2.
The deliveries are earmarked for three potential locations – Asia, North America and Europe – and could commence by 2024.
FFI and Covestro view the non-binding MoU as the first step towards a broader strategic partnership to accelerate the green energy transition, particularly in the energy-intensive industry.
FFI is Australian green energy and green industry company, and Covestro is a German-based supplier of high-tech polymer materials. Covestro uses hydrogen and its derivatives as feedstock to produce high-performance polymers.
Dr Andrew Forrest, FFI Chairman, said, “This is a ground-breaking collaboration which reinforces the power of green hydrogen to accelerate the decarbonisation of some of the most energy-intensive industries around the world.
Dr Markus Steilemann, CEO of Covestro, commented, “Green hydrogen and its derivatives play a key role for the chemical industry, both as an alternative feedstock and a source of clean energy.”
Julie Shuttleworth, the FFI CEO, added, “This collaboration reinforces that green hydrogen is a practical, implementable solution for a range of difficult-to-decarbonise industries.”