Fortescue Future Industries (FFI), an Australian-based global green energy and green industry company, and Covestro, a world-leading supplier of high-tech polymer materials headquartered in Germany, intend to enter into a long-term supply agreement for green hydrogen and its derivatives, including green ammonia.
FFI and Covestro will sign a Memorandum of Understanding (MoU) under which FFI will supply Covestro with the equivalent of up to 100,000 tonnes of green hydrogen (GH2) per year.
By substituting GH2 for grey hydrogen and its derivatives, Covestro will be able to reduce its greenhouse gas emissions by up to 900,000 tonnes per year.
The deliveries are scheduled to begin in three locations — Asia, North America, and Europe – by 2024.
FFI and Covestro regard the non-binding memorandum of understanding as the first step toward a larger strategic relationship aimed at accelerating the transition to green energy, particularly in energy-intensive industries.
“This is a ground-breaking cooperation that demonstrates the capacity of green hydrogen to expedite the decarbonisation of some of the world’s most energy-intensive businesses,” said FFI Chairman Dr Andrew Forrest AO.
“FFI and Covestro share the belief that green hydrogen and green ammonia will play a crucial role in enabling companies to reach their climate targets and preventing runaway global warming.
“We look forward to working with Covestro to supply their green hydrogen needs, and collaborating with Germany to enable it to become the world leader in global decarbonisation, green hydrogen and ammonia,” Dr Forrest said.
Dr Markus Steilemann, CEO of Covestro said, “We are delighted that FFI shares our circular economy vision and is willing to take courageous steps to foster the urgently needed market ramp-up for green hydrogen.
“Our collaboration with FFI underlines our ambition to pioneer the transition towards a circular economy and climate-neutral production. Green hydrogen and its derivatives play a key role for the chemical industry, both as an alternative feedstock and a source of clean energy.
“The transition towards green hydrogen and its derivatives will be an important step forward in our efforts to offer more sustainable products that also reduce the carbon footprint of our customer industries,” Dr Steilemann concluded.
FFI CEO Julie Shuttleworth AM said, “Covestro is a global leader in its field with its materials used in nearly every area of modern life, including in the automotive, construction and electronics industries.
“This collaboration reinforces that green hydrogen is a practical, implementable solution for a range of difficult-to-decarbonise industries,” Ms Shuttleworth said.
FFI’s goal is to increase its green hydrogen production to 15 million tonnes per year by 2030, and then to 50 million tonnes per year during the next decade.
Covestro manufactures high-performance polymers using hydrogen and its derivatives as a feedstock. Covestro committed to a comprehensive transition to fossil-free alternative raw materials and renewable energies as part of a broader circular economy plan. The relationship with FFI is a critical step in achieving this goal.
