Fortescue Future Industries (FFI) has signed a global strategic partnership with energy infrastructure company Tree Energy Solutions to (TES) develop a cutting-edge green hydrogen and energy import facility in Germany.
The EUR 130 million will be funded by FFI’s capital commitment and is intended to open a pathway for access to critical infrastructure to execute its strategy.
As part of the partnership agreement, FFI subsidiary Netherlands Fortescue Future Industries Holdings will invest EUR 30 million to become a shareholder in Tree Energy Solutions and EUR 100 million in the construction of the TES terminal in Wilhelmshaven, Germany.
Netherlands FFI will be a major shareholder with a 30 per cent stake in Deutsche Grungas und Energieversorgung, the project company that will build the Wilhelmshaven Green Energy Hub in Germany.
The first phase of the partnership involves the two companies’ joint development and investment in the supply of 300,000 tonnes of green hydrogen. Final locations are currently being agreed upon and a financial investment decision is expected in 2023.
The initial delivery of green hydrogen into TES’ terminal in Wilhelmshaven, Germany, is expected in 2026, with initial collaboration projects focused on Australia, Europe, the Middle East, and Africa.
The partnership demonstrates the two companies’ commitment to cutting global emissions by accelerating the import and production of green molecules as a lower-cost alternative to fossil fuels.
FFI joins a group of investors in TES comprised of international financial institutions and multinational energy companies such as E.ON, HSBC, UniCredit, and Zodiac Maritime.
“The United Kingdom and Europe urgently need green solutions to replace fossil fuels and this investment will enable Europe to do exactly that. Not in 2050, but in four years from now,” said Andrew Forest, executive chairman of Fortescue.
“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. 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.”
