Fortescue Future Industries

Solution Statement

Fortescue Future Industries (FFI) is investing in the entire value chain for green hydrogen. From generation of renewable energy, through conversion to green hydrogen, to storage and distribution to market. We are also investing heavily in new technologies necessary to optimize and scale up green hydrogen production, test hydrogen transport solutions and decarbonize our mining operations. 

We aim to become the world’s leading fully renewable energy and green products company with a commitment to deliver over 15 million tons of renewable derived green hydrogen to the world by 2030.

At FFI, we are establishing a global portfolio of renewable green hydrogen and derived products, such as green ammonia, that will position us at the forefront of a global renewable hydrogen industry. FFI will leverage Fortescue’s world-leading track record of innovation and execution of large-scale integrated infrastructure projects to achieve these goals.

As a large industrial mining and infrastructure company that has committed to net zero operations by 2030, FFI, through its parent Fortescue 

Metals Group is able to trial and test technologies at commercial scale on its own operations. As a group, FFI and Fortescue Metals Group provide both supply and demand for green hydrogen – addressing the chicken and egg conundrum.

FFI has a longstanding commitment to sustainability and the welfare of the communities where it operates. We intend to leverage our growth strategy to address other sustainable development goals including economic growth and energy independence in less developed countries.

Challenge Statement

FFI is developing sustainable, transformative and socially impactful green power and hydrogen projects globally. Many of the world’s best renewable energy resources exist in countries where it is challenging to build and operate large-scale projects. Even if funding is being allocated to renewable energy projects there is a resistance to finance projects.

Leveraging the muscle of international financial institutions to offset political risk would open up huge opportunities for Green Hydrogen as well as improving the economic stability of the host country.

Establishing a global Green Hydrogen industry will only work when it is able to compete on cost with the fossil fuel industry. It is tough to compete on cost when there remain large-scale subsidies for fossil fuels in many developing countries and emerging economies. It is even tougher when the externalities including greenhouse gas emissions of the fossil fuel industry are not factored into the costs that the market must pay.

Minimum production of 15 million tons of renewable derived green hydrogen per annum by 2030 

Too much of the global policy landscape is designed in a way to support and maintain an industry that poisons our planet. It appears that this legacy will continue through new subsidies for fossil fuel derived blue hydrogen. Renewable energy generation such as wind, solar, and hydro is the only solution for zero carbon power and fuels. In order to give green hydrogen a fair chance, we need to level the playing field.

Finally, baseline regulations and protocols of hydrogen networks, infrastructure and global trade will also be critical to facilitate the roll out of green hydrogen

Energy Compact Description

FFI has committed to establishing a production base of a minimum of 15 million tons of renewable derived green hydrogen per annum by 2030.

This will be achieved by developing sustainable, transformative and socially impactful green power and hydrogen projects globally. We will seek to leverage our growth strategy to advance other sustainable development goals.

FFI is committed to investing in new technologies necessary to optimize and scale up green hydrogen production, test hydrogen transport solutions and decarbonize specific industrial operations.

Energy Compact Indicators

By 2030 Fortescue is planning to have deployed 150GW of renewable energy generation across the globe to drive the production of over 15 million tons of renewable green hydrogen to the world by 2030.

By 2025 the Green Hydrogen Organisation (founded and supported by Fortescue) has a global reach through a significant number of National Chapters across the world and is the leading the global charge in driving deep decarbonization across industry. The Green Hydrogen Organisation is through the Green Hydrogen Development Compact creating a dedicated global collaborative effort to rapidly accelerate the pivot away from fossil-fuel based economies in developing countries to renewable energy including the production and use of Green Hydrogen.

Removal of pervasive subsidies for the fossil fuel industries. Establishment of a globally recognized Green Hydrogen Certification Scheme / Guarantee of Origin Scheme.Fortescue achieves carbon neutrality in operations by 2030 through deployment of various projects and initiatives across its mining operations.

The capital cost of the hydrogen generation plant and Fuel Cell system is very high making P2P & energy storage solution unviable.  For the overall system to become viable, ramping up of manufacturing capability and setting up of manufacturing facilities in India needs to be incentivized. The overall round-trip efficiency also needs to be improved by way of technical improvements to reduce the requirement of renewable power