Fortescue Future Industries will invest over $195 million into the development of Tree Energy Solutions’ world-leading hydrogen and green energy import facility in Germany.
The Global Strategic Collaboration agreement between the two companies will see Fortescue invest $44.5 million to acquire a 30 per cent stake in Tree Energy Solutions subsidiary construction company – Deutsche Grüngas und Energieversorgung GmbH.
Fortescue also committed to an investment upwards of $150 million for the construction of the hydrogen and green energy import terminal in Wilhelmshaven, Germany.
Fortescue founder and Executive Chairman, Dr Andrew Forrest, said the deal would further the company’s net-zero energy ambitions.
“From the beginning of FFI, our philosophy was to drive performance across the entire new renewable GH2 value chain while delivering returns to our shareholders,” Dr Forrest said.
“This investment reinforces this commitment and is a significant step forward in FFI’s journey to become one of the world’s largest green energy producers.”
The collaboration will combine FFI’s market-leading expertise in developing large-scale renewable energy production, with TES’s unique sustainable business model and access to the European green hydrogen market.
The first phase of the partnership will be the joint development of 300,000t of green hydrogen with final locations being currently agreed, and a financial investment decision targeted in 2023.
The first delivery of green hydrogen into Tree Energy Solutions terminal in Wilhelmshaven, Germany, is anticipated to take place in 2026. Initial collaboration projects will be focused on Australia, Europe, the Middle East and Africa.
Tree Energy Solutions Chief Executive Officer, Marco Alvera, said the agreement was a milestone for the emerging company.
“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,” Mr Alvera said.
“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.”
