With an initial focus on Latin America and Australia, Fortescue Future Industries and Enel Green Power will collaborate to explore the co-development of the green hydrogen value chain.
The announcement of this alliance will aid FFI and EGP in achieving their objectives to promote energy security and diversify future energy supplies as well as to aid the global effort to reduce emissions and combat climate change. By working together, FFI and EGP will have a framework to find and evaluate potential green hydrogen/ammonia initiatives.
The agreement represents a significant turning point for the two partners as they work to expand their large-scale production facilities for green hydrogen and green ammonia in Australia and Latin America.
The key role of green hydrogen in decarbonizing difficult-to-abate industries like fertilizers, other chemicals, steel manufacturing, shipping, and aviation is shared by FFI and EGP. In these industries, hydrogen is used as a feedstock or to generate high-temperature heat, and the reduction of CO2 emissions through electrification is either impractical or complicated. The companies hope to achieve cost parity between green hydrogen and alternatives based on fossil fuels over this decade.
Salvatore Bernabei, CEO of Enel Green Power, stated: “We strongly think that green hydrogen can play a vital role in the decarbonization of global energy systems, complementing direct electrification, in the near future. This partnership with a company like FFI perfectly complies with Enel’s hydrogen goal to lower the cost of producing green hydrogen through the scalability of technology and creative ideas.
Mark Hutchinson, the CEO of FFI, stated: “This exciting announcement comes at a crucial time in energy. Competitive green energy costs are more important than ever as winter approaches and energy prices keep rising. Green energy alternatives like green hydrogen and green ammonia can help combat climate change in addition to ensuring energy security and lowering energy expenditures. Enel is the ideal partner to work with to make a green future a reality because of its great track record and commitment to green energy.