Fortescue Future Industries (FFI) and Enel Green Power S.p.A. (EGP) have announced a partnership that will support their goals to not only diversify future energy supply and increase energy security, but also to help the world in its fight to lower emissions and fight climate change.
The partnership will allow FFI and EGP to explore co-development of the green hydrogen value chain with an initial focus on Latin America and Australia. The companies, also through this collaboration, aim to make green hydrogen cost-competitive with fossil fuel-based alternatives during this decade.
FFI and EGP share a common view on the key role of green hydrogen to decarbonise hard-to-abate sectors such as fertilisers, other chemicals, steel manufacturing, shipping and aviation, where hydrogen is used as a feedstock or to generate high-temperature heat, and where the abatement of CO2 emissions through electrification is not possible or is more complex.
The collaboration also intends to establish a framework for FFI and EGP to identify and assess possible green hydrogen/ammonia projects.
Enel Green Power CEO, Salvatore Bernabei, said, “We strongly believe that in the near future green hydrogen can play a strategic role in the decarbonisation of global energy systems, complementing direct electrification.
“This collaboration with a partner such as FFI fully fits within Enel’s hydrogen strategy to reduce the green hydrogen production cost, through the scale up of technology and through innovative solutions.”
The partnership marks an important milestone for the two partners as they look to bring even more large-scale production sites of green hydrogen and green ammonia to Latin America, as well as to Australia.
Green hydrogen is the only sustainable kind of hydrogen as it does not emit any CO2 during the overall production process, unlike fossil fuel-based hydrogen.
It is a practical and implementable solution that can help revolutionise the energy sector: helping to decarbonise heavy industry and to create jobs globally.
Ammonia, which is a hydrogen-based compound, can be used to ship and store hydrogen more effectively, reducing required volumes, and it is one of the most common chemical feedstocks used to produce fertilisers.
Green ammonia can be used to decarbonise the fertiliser and shipping industries.
Fortescue Future Industries CEO, Mark Hutchinson, said the partnership announcement is exciting and comes at a critical moment in energy.
“As winter approaches, and energy costs continue to skyrocket, competitive green energy costs have never been more needed.
“Green hydrogen and green ammonia are part of the solution for not only energy security and lower energy costs, but also for fighting climate change.
“With a strong proven record and dedication in green energy, Enel is the perfect partner to work with to make a green future a reality.”
