In order to speed up the construction of a green hydrogen and green energy import facility in Germany, Fortescue Future Industries (FFI) and energy infrastructure developer Tree Energy Solutions (TES) have formed a global strategic partnership.
The €130 million (US$127 million) investment will be financed by FFI’s unused capital commitment and gives FFI a chance to get access to vital infrastructure for carrying out its agenda.
In accordance with the agreement, FFI subsidiary Netherlands Fortescue Future Industries Holdings B.V. will invest €30 million (US$29 million) to become a shareholder in Tree Energy Solutions B.V., as well as €100 million (US$98 million) to build the TES terminal in Wilhelmshaven, Germany. Furthermore, the company will be a significant shareholder with a 30% stake in Deutsche Grüngas und Energieversorgung GmbH, the project company that will build the TES Green Ene.
Green energy can be transported thanks to the portfolio of terminals that TES is building around the world. This partnership’s initial phase will involve developing and investing together in the supply of 300,000 tonnes of green hydrogen. The final locations will be decided upon soon, and a financial investment decision is anticipated for 2023.
In 2026, TES anticipates receiving its first shipment of green hydrogen at its terminal in Wilhelmshaven, Germany. Australia, Europe, the Middle East, and Africa will be the primary areas of concentration for the first partnership projects.
By speeding the import and manufacture of green molecules as a more affordable alternative to fossil fuels, the new strategic partnership underscores FFI and TES’ commitment to lowering global emissions. FFI joins a group of investors in TES that includes multinational energy businesses including E.ON, HSBC, UniCredit, and Zodiac Maritime as well as international financial institutions.
