Here’s why Fortescue Metals’ (ASX:FMG) green energy leg is grabbing spotlight 

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Here’s why Fortescue Metals’ (ASX:FMG) green energy leg is grabbing spotlight 

Fortescue Metals Group Limited (ASX:FMG)
Image source: © Transversospinales | Megapixl.com

Highlights

  • Fortescue Future Industries inks an agreement with the Industrial Park at TransAlta.
  • The agreement aims to convert a coal mine into a green hydrogen production facility.
  • The move would result in hundreds of new local jobs and aid the North American region’s transition to a leading global green energy heartland.

Australian iron ore company Fortescue Metals Group (ASX:FMG) is leading the world effort to decarbonise the hard-to abate-sectors.

In a significant development, the company’s green energy leg, Fortescue Future Industries (FFI) has announced plans to assess the feasibility of transforming a US-based coal mine into a green hydrogen production plant.

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Proposed green hydrogen production plant

The global green energy company has reached an agreement with the Industrial Park at TransAlta (IPAT) in the US state of Washington. The binding exclusivity agreement is designed to examine the feasibility of repurposing existing fossil fuel infrastructure to create green hydrogen.

Adjacent to the IPAT project site, the Centralia coal-fired power plant is due for closure in 2025. As per the media release, IPAT was formed to attract investment that would assist long-term employment in the region and redevelop the site.

After completing the feasibility study, FFI intends to use the existing workforce for the green hydrogen project. The company believes that this project has the potential to decarbonise the sectors of North America and create an emerging green economy.

Andrew Forrest, founder and chairman of FFI, highlighted the company’s goal to turn North America into a ‘leading global green energy heartland’, creating thousands of green job opportunities.   

Mr Forrest further highlighted that repurposing the existing fossil fuel infrastructure is part of the solution to saving the planet. The agreement to create green hydrogen indicates the company’s efforts to implement the technologies carbon emitters need to reach net zero.

FFI to apply for DOE grant

FFI, in partnership with Pacific Northwest stakeholders, plans to file an application for a grant under the US Department of Energy Hub Program. The Pacific northwest stakeholders include the Lewis Country Energy Innovation Coalition, Twin Transit, Washington Maritime Blue, and Puget Sound Energy.

FFI has been working closely with the Lewis Economic Alliance and the Lewis County Energy Innovation coalition to conduct due diligence on the project to date.

Learn more: Green Vs Blue, which hydrogen can drive global energy transition?

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