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BY
Seneca ESG
- November 10, 2021
Australian iron ore mining company Fortescue Metals Group and US-based Universal Hydrogen, a company focusing on aviation decarbonization, have inked a preliminary agreement on green hydrogen supplies for the aviation industry, as reported by Reuters on November 10. According to the agreement, Fortescue will first work on the feasibility to establish production and logistics centers of hydrogen in Iceland, New Zealand, and Queensland of Australia. Besides, the two companies did not provide other details.
Green hydrogen, produced from electrolysis of water by using renewable energy sources, is regarded as a green choice to replace fossil fuels in industries such as steel and aviation. For reference, Airbus released its plan to produce and put short or medium-range hydrogen-powered planes into use by 2035. In light of this, Universal Hydrogen has been seeking partnerships with regional airlines like Icelandair over hydrogen fuels. On the other hand, Fortescue’s chairman Andrew Forrest announced in October to transfer Fortescue into a green energy company with specific targets, including making 15m tons of green hydrogen annually by 2030. In the same month, the Australian company unveiled two deals regarding hydrogen, which were setting up a joint venture with US hydrogen technology developer Plug Power and investing in Netherlands’ HyET Hydrogen and HyET Solar. Fortescue’s green power unit Fortescue Future Industries and Plug Power aimed to start building the world’s largest electrolyser factory in Queensland in March 2022 and complete it by 2023.
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