Fortescue and Tree Energy to Develop Green Hydrogen Integrated Project in Europe
Renewable energy from the project will meet the requirements of 1.5 million households
October 6, 2022
Global green energy company Fortescue Future Industries and green hydrogen (H2) company Tree Energy Solutions (TES) will jointly develop what is claimed to be the world’s largest green hydrogen integrated project to help Europe mitigate its current energy and climate crisis.
Fortescue and TES plan on industrial-scale green hydrogen production globally with an initial focus on Australia, Europe, the Middle East, and Africa.
Fortescue will make an equity investment of €30 million (~$29.7 million) to become a strategic shareholder in TES. It will also invest €100 million (~$99.16 million) for a significant stake in the construction of the TES import terminal in Wilhelmshaven, Germany. The first deliveries of green hydrogen into the TES terminal are expected by 2026.
In the first phase, the two companies will invest in the supply of 300,000 tons of green H2, with final locations being currently discussed.
The projects will produce sufficient renewable energy to meet the requirements of 1.5 million households.
The partnership leverages Fortescue’s expertise in developing large-scale renewable energy projects and TES’ business model, which combines hydrogen with recycled CO2 to create an efficient, circular, net-zero energy loop.
Executive Chairman and Founder of Fortescue Future Industries Andrew Forrest said, “The UK and Europe urgently need green energy solutions to replace fossil fuels. This important investment will help to do exactly that. Not in 2050, in four years from now.”
TES will use CO2 as a carrier to import green hydrogen in the form of renewable natural gas. When the gas reaches Germany, it will be captured and transported back to the supply location, where the hydrogen is produced, in a circular, closed-loop zero-carbon system.
CEO of TES Marco Alverà observed, “We are delighted to announce this partnership which marks a new milestone in delivering scalable, affordable green hydrogen as well as securing renewable energy production. This agreement is another stepping stone in building TES as one of the leading hydrogen players in the world to accelerate the energy transition with the most cost-effective, bankable, and scalable green alternative to today’s fossil fuels.”
Last October, Fortescue acquired a 60% stake in the Dutch-based High yield Energy Technologies Group. The acquisition marked an important milestone in the company’s vision to produce affordable green hydrogen, targeting a supply of 15 million tons worldwide by 2030.
The European Commission has recently approved the second phase of the Important Project of Common European Interest (IPCEI) to support research, innovation, and the first industrial deployment of the hydrogen technology value chain in Europe.