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Highlights
- The trading halt was due to the Fortescue’s announcement on FFI's MoU With E.ON.
- However, after giving the media clarification, the company resumed its trading later.
- FFI and E.ON have signed an MoU to deliver up to five million per annum of green renewable hydrogen (GH2) to Europe by 2030.
Australian miner Fortescue Metals Group Ltd (ASX:FMG) put its shares trading on halt early morning today (30 March 2022).
In a statement to ASX released at 9.52 am AEDT, the company said, "trading in the securities of the entity will be temporarily paused pending a further announcement."
Source: © Rummess | Megapixl.com
However, the trading was resumed after the company shared an announcement at 10.52 am AEDT. Fortescue shared a clarification note on the media statement released on 29 March 2022.
On the back of the news, the company's shares were trading 0.15% higher at AU$19.52 apiece on Wednesday (30 March 2022).
Also Read: Fortescue (ASX:FMG) partners with Airbus to give wings to green hydrogen planes
What is the clarification about?
Fortescue clarified regarding Fortescue Future Industries (FFI) signing a memorandum of understanding (MoU) with E.ON to supply Germany with green hydrogen by 2030.
The expenditure indicated is a high-level estimate by the chairman of what such a large project may cost and whether it is suitable in the context. The comment was made to add context and magnitude to the MoU's possibilities.
However, Fortescue cautions that this expenditure is not guaranteed and that all final investment decisions will be made solely at the discretion of the Fortescue Board.
Meanwhile, FFI is attracting interest from a wide range of investors, including retail, institutional investors, sovereign wealth funds, and across the capital structure.
Fortescue has committed 10% of NPAT to FFI – an estimated US$1 billion in FY21.
What is the FFI's MoU With E.ON?
Australian renewable green energy company Fortescue Future Industries (FFI) and E.ON have signed an MoU to deliver upto five million per annum of green renewable hydrogen (GH2) to Europe by 2030. The agreement was signed in Berlin by Dr Andrew Forrest, chairman of FFI, and Patrick Lammers, COO of E.ON.
FFI and E.ON are together in the spirit of the Australia Germany Hydrogen Accord signed in June 2021 at the G7.
What does E.ON Group do?
E.ON is one of Europe's leading energy network and infrastructure operators and a provider of innovative consumer solutions to 50 million customers. As a result, the group is firmly dedicated to Europe's energy transition, as well as to sustainability, climate preservation, and the future of the world.
Bottom line
This deal symbolises E.ON and FFI's larger commitment to lead Europe's decarbonisation and boost green energy supply security at a time when Europe has to reduce its reliance on Russian fossil fuels as early as possible. Renewable GH2 at a rate of five million tonnes per annum (mtpa) is almost one-third of the calorific energy Germany imports from Russia.
Also Read: Fortescue (ASX:FMG) acquires Williams Advanced Engineering
