A non-binding term sheet between Fortescue Future Industries (FFI) and African Rainbow Energy outlines their joint exploration of possible green hydrogen business prospects throughout South Africa.
The collaboration takes place at a pivotal moment as foreign investors flock to the South African green hydrogen sector. With its financial resources, market expertise, and development credentials, African Rainbow Energy complements Fortescue’s knowledge of and investment in the worldwide green hydrogen market.
In order to assist the development of green hydrogen projects at key locations around South Africa, both parties will use their respective relevant knowledge to explore domestic market potential. African Rainbow Energy and FFI will discuss the parameters of a legally binding cooperative development agreement after an appropriate business case has been found.
Both parties intend to construct projects as part of South Africa’s Just Energy Transition with the purpose of bringing fresh economic opportunities, educational opportunities, and skill-building programs to make sure the advantages of such projects are shared throughout neighborhood groups.