Australian iron ore miner Fortescue Metals Group (FMG) [FMG:AU] plans to sign a green hydrogen supply deal with German chemicals maker Covestro [1COV:GR], as reported by Reuters on January 17. Starting 2024, FMG plans to supply Covestro with up to 100,000 metric tons of green hydrogen annually across Asia, North America, and Europe through its fully owned subsidiary Fortescue Future Industries (FFI).
FMG previously stated that it intends to become carbon neutral by 2030 through the development of green electricity, green hydrogen, and green ammonia. By 2030, the company aims to supply 15m metric tons of green hydrogen throughout the world. As part of its decarbonization plan, the Australian business said it will invest between USD400m and USD600m this financial year to develop green trains, trucks, and ships, as well as decarbonization technology. In October 2021, FFI acquired a 60% share in High Yield Energy Technologies (HyET) Group, a Dutch renewable energy company that owns HyET Hydrogen. With the acquisition, FMG seeks to improve its capacity to produce affordable green hydrogen. FFI will also spend AUD115m (USD82.6m) to develop a Global Green Energy Manufacturing center in Queensland, Australia. The facility will manufacture equipment crucial to renewable energy production, such as electrolyzers, solar cells, and wind turbines.