European energy crisis gives Australia opportunity to export more green hydrogen

The European energy crisis presents a big potential for Australia to export more green energy, according to the chief financial officer of Fortescue Future Industries (FFI) on Thursday.

Due to an energy crisis, European countries are attempting to wean themselves off of Russian gas by promoting renewable energy sources. In anticipation of colder weather and any Russian supply interruptions, nations are also searching for measures to reduce energy consumption and restock their gas inventories.

As the miner transitions from a pure-play iron ore producer to a green energy company, Fortescue Metals Group and its green energy arm Fortescue Future Industries are working to build the infrastructure and technology to produce green hydrogen, according to Reuters.

In order to investigate transporting green hydrogen, Fortescue and Germany’s largest energy company E.ON inked a letter of understanding earlier this year.

For instance, the United States’ passage of the Inflation Reduction Act (IRA) this year “turbo-charged” the market with subsidies for the price of green energy. He added that legislation encouraging the use of green hydrogen is also coming from Europe.