Fortescue Metals Group Limited (ASX: FMG) Future Industries, the green division of the resources giant, has signed a green hydrogen deal in Indonesia.
Fortescue Future Industries (FFI) is a key enabler of Fortescue's decarbonisation strategy. It also has a strategy to become a leader in the renewable energy and green products industry, with a vision of making green hydrogen the most globally traded seaborne commodity in the world.
Fortescue Future Industries signs Indonesian deal
FFI and the North Kalimantan Provincial Government of the Republic of Indonesia have signed a 'co-operation agreement' to explore and study the potential for renewable energy and green hydrogen projects.
This follows on from a memorandum of understanding signed five months ago.
Fortescue Future Industries is proposing to produce green hydrogen and green ammonia in North Kalimantan for domestic use and export markets. These will be powered by renewable energy which will be built in the North Kalimantan Province in Indonesia.
Not only does FFI plan for the projects to provide significant economic benefits to the region, but it will also have the "highest standards of social and environmental sustainability." It will aim to use local labour expertise and use local goods and services.
What facilities does FFI want to build?
The idea is that Fortescue Future Industries could potentially build an industrial processing facility that is able to produce a minimum of 600,000 tonnes of green hydrogen per annum.
This project is still needs to go through further studies as well as be approved by Fortescue board.
The green industrial business noted that its operations are in-line with the vision and mission of President Joko Widodo and Governor Zainal in providing jobs for local people and generating opportunities for local businesses.
FFI also said that it supports the President's measures in opening pathways for green investment and initiatives to decarbonise Indonesia's economy through green hydrogen fuel which is produced with zero emissions.
FFI CEO commentary
The boss of Fortescue Future Industries, Julie Shuttleworth, said:
FFI is supportive of Indonesia's efforts to decarbonise its economy. We look forward to working together with the Provincial Government and local communities to help place North Kalimantan at the forefront of developing renewable resources that will power green hydrogen and green ammonia production.
We are proud that our Cooperation Agreement places human rights, environment and then economics, in that order, in every discussion we have with every government in the world – including Indonesia.
New CEO
Fortescue announced this week that after a 10-year process of investigating various solutions to global warming, it is officially transitioning into a vertically integrated green energy and resources group.
As part of the announcement, it was announced that Fortescue CEO Elizabeth Gaines was transitioning to a new role as Fortescue's global green hydrogen brand ambassador as well as remaining as a non-executive director of Fortescue.
The company is now looking for a CEO and other leaders with "exceptional skills and global experience across heavy industry, manufacturing and renewable energy."
