The Fortescue Metals Group Limited (ASX: FMG) share price is in the green this morning after Fortescue Future Industries announced its plan to build a hydrogen-equipment manufacturing facility.
Chair of Fortescue Metals and Fortescue Future Industries, Andrew 'Twiggy' Forrest, commented on the plan:
This initiative is a critical step in Fortescue's transition from a highly successful pure play iron ore producer, to an even more successful green renewables and resources powerhouse.
At the time of writing, the Fortescue Metals share price is $14.29, 0.28% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.7% this morning. Meanwhile the S&P/ASX 200 Resources Index (ASX: XJR) is up 0.32%.
Additionally, Fortescue Metals' stock is gaining alongside iron ore prices. According to data from Business Insider, the price of iron ore soared 4% higher on Friday. It finished the day trading at US$122.86 a tonne.
Let's take a closer look at Fortescue Future Industries' newest ambitions.
Fortescue share price gains amid hydrogen news
The Fortescue Metals share price is lifting after Forrest and Queensland's Premier, Annastacia Palaszczuk, announced Fortescue Future Industries' plan to build one of the largest hydrogen-equipment manufacturing facilities on earth.
The Global Green Energy Manufacturing Centre will be located in Gladstone. It will produce up to 2 gigawatts of electrolysers each year – more than doubling global production.
Electrolysers split hydrogen from water and, if run on renewable electricity, are entirely carbon neutral. Production of the technology should begin in early 2023.
Fortescue Future Industries will initially invest around $114 million to produce the first electrolysers. Though its total investment could be more than $1 billion if demand allows.
The body will begin construction on the first stage of the 6-stage project in February 2022, subject to approvals.
According to Fortescue Future Industries CEO Julie Shuttleworth, the facility will be "an epicentre for Queensland's green hydrogen ambitions". Shuttleworth added:
[Fortescue Future Industries'] goal is to become the world's leading, integrated, fully renewable energy and green products company, powering the Australian economy and creating jobs for Australia as we transition away from fossil fuels. Our manufacturing arm, starting with electrolysers and expanding to all other required green industry products, will herald great potential for green manufacturing and employment in regional Australia.
According to Queensland's Deputy Premier, Steven Miles, the facility will be built on land developed by the state's government.
The Global Green Energy Manufacturing Centre will create more than 300 jobs over its life and produce a new export industry for the state.