Fortescue Future Industries (FFI) and Enel’s global renewables arm Enel Green Power (EGP) will partner to co-develop a green hydrogen value chain to identify opportunities for Latin America and Australia.
The collaboration intends to establish a framework for FFI and EGP to identify and assess possible green hydrogen and ammonia projects.
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.
FFI and EGP believe it is a practical and implementable solution that can help revolutionise the energy sector, helping to decarbonize heavy industry and to create jobs globally.
FFI and EGP share a common view on the key role of green hydrogen to decarbonize 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.
Ammonia, which is a hydrogen-based compound, can be used to ship and store hydrogen more effectively, reducing required volumes.
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.
Additionally through this collaboration, FFI and EGP also aim to make green hydrogen cost-competitive with fossil fuel-based alternatives during this decade.
This partnership will support FFI and EGP in 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.
EGP CEO, Salvatore Bernabei, said EGP strongly believes that in the near future green hydrogen can play a strategic role in the decarbonization of global energy systems and complement 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,” Mr Bernabei said.
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.
FFI CEO, Mark Hutchinson, said this exciting announcement 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,” Mr Hutchinson said.
“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.”
