Australian Fortescue to supply green hydrogen to German Covestro

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The logo of Fortescue Metals Group adorns its headquarters in Perth, Australia November 11, 2015. REUTERS/David Gray/File Photo

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Jan 17 (Reuters) – Australian iron ore mining group Fortescue Metals Group (FMG.AX) said on Monday it intends to sign a long-term agreement to supply German chemicals maker Covestro AG (1COV.DE) with “green hydrogen” and its derivatives.

Fortescue Future Industries (FFI) will supply the equivalent of up to 100,000 tonnes of green hydrogen per year once the deal is formalized, it said on its website.

“This collaboration reinforces that green hydrogen is a practical and feasible solution for a range of hard-to-decarbonise industries,” said Julie Shuttleworth, FFI’s chief executive.

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Under the agreement, green hydrogen – a clean-burning fuel made using energy from renewable sources to electrolyze water – will potentially be supplied to Covestro in Asia, North America and Europe. from 2024.

Fortescue, which aims to become carbon neutral by 2030, has signed a series of projects through FFI over the past year to underscore its drive to transition from a pure iron ore producer to an energy company green.

FFI expects to spend between $400 million and $600 million this fiscal year to develop green trains, trucks and transport, as well as decarbonization technologies.

It also plans to expand its production of green hydrogen to 15 million tonnes per year by 2030.

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Reporting by Sameer Manekar in Bengaluru; Editing by Kevin Liffey

Our standards: The Thomson Reuters Trust Principles.

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