Under a non-binding term sheet, Fortescue Future Industries (FFI) and African Rainbow Energy will collaborate to explore the potential for green hydrogen across South Africa.
In a statement, FFI said the partnership is pivotal as South Africa’s green hydrogen industry attracts international investors.
African Rainbow Energy’s development credentials, local market understanding, and financial capabilities are a perfect match for Fortescue’s knowledge and investment in the worldwide green hydrogen sector.
According to FFI, both parties will use their respective skills to discover the domestic market potential to assist in developing green hydrogen projects in strategic places throughout South Africa. African Rainbow Energy and FFI will negotiate the terms of a binding Joint Development Agreement after an appropriate business case has been identified.
FFI CEO Mark Hutchinson said the collaboration would take advantage of African Rainbow Energy’s expertise in the extractives sector to draw clients who understand that green hydrogen and green energy will compete with fossil fuels on price and supply reliability, helping the world and the energy markets transition to a greener future.
“African Rainbow Energy’s commitment to renewable energy projects is already well established through their investments in South Africa’s renewable energy sector. Green hydrogen is another smart commercial commitment but also one which will empower local communities through jobs and sustainable, long-term business, which will see returns go back into the local community,” Hutchinson stated.
African Rainbow Energy CEO Brian Dames said African Rainbow Energy’s major goal is to use cutting-edge, renewable energy technologies to deliver cost-effective energy solutions throughout Africa, including in South Africa. Along with sharing the Company’s corporate goals, Dames stated that Fortescue also believes that it can improve things for both people and the environment.
Future potential projects with Fortescue would provide employment opportunities providing an opportunity for the continuation of the company’s commitment to work with partners who share common values and a climate conscience,” Dames added.
FFI and African Rainbow Energy intend to construct projects as part of South Africa’s Just Energy Transition to bring fresh economic opportunities, educational opportunities, and skill-building programs to ensure such projects’ advantages are shared throughout neighbourhood groups.
