The Fortescue Metals Group Limited (ASX: FMG) share price is in focus after the company announced it is working with Airbus on decarbonisation.
Fortescue Future Industries (FFI) is on a mission to try to decarbonise heavy industry where it's hard to reduce emissions.
Airbus is one of the biggest aircraft makers in the world.
FFI and Airbus are aiming to help decarbonise the aviation industry with zero-emission green hydrogen.
What's the decarbonisation idea?
Fortescue Future Industries is looking to become a world-leading producer of green hydrogen. This is where hydrogen is made from water using 100% renewable electricity. It expects to be able to produce an increasing amount of green hydrogen in the coming years.
Airbus and FFI aim to leverage their respective expertise to support an entry-into-service of a green hydrogen-based aircraft by 2035.
They have signed a memorandum of understanding which will allow both companies to collaborate closely, as one focused taskforce, to implement green hydrogen as a fuel within the aviation industry.
What are some of the challenges?
Fortescue Future Industries and Airbus will be looking at some of the challenges surrounding green hydrogen including regulations, infrastructure and global supply chains. This ranges from the production of green hydrogen, all the way to the delivery to airports and transfer onto aircraft.
It was revealed that, under the signed memorandum of understanding, FFI will provide cost outlook and technology drivers on the various elements of the supply chain and will build infrastructure deployment scenarios for the supply of green hydrogen to targeted airports. Airbus will provide characteristics on fleet energy usage, scenarios for hydrogen demand in aviation, refuelling specifications and aviation regulatory framework.
Leadership commentary
The FFI founder and Chair Dr Andrew Forrest points out that the global aviation industry accounts for more than 2.5% of global carbon dioxide emissions. Those emissions have doubled since the 1980s.
Dr Forrest said:
The time is now for a green revolution in the aviation industry. This exciting collaboration brings together leaders in the aviation industry with leaders in green energy for a pollution-free future.
We are all citizens of a global world. People want to travel, reunite with family and friends and explore new places without being forced to pollute the planet. The problem isn't travel, the problem is how we fuel our planes and ships – all of that must turn emissions free. No greenwash, no mirage, just 100% green.
FFI also included a quote from the Airbus Vice President of Zero Emissions Aircraft Glenn Llewellyn:
Airbus has identified green hydrogen as the most promising option for decarbonisation to meet our environmental challenges. You heard it here first: We are starting the green aviation revolution.
Fortescue share price snapshot
Since the start of 2022, Fortescue shares are down 6%.
