Fortescue and JCB sign multibillion green hydrogen supply agreement
The green hydrogen supply deal is signed at the critical climate forum of COP26.
Fortescue Future Industries (FFI) will become the largest supplier of green hydrogen (GH2) to the UK after signing a multi-billion-pound deal with construction giant J C Bamford Excavators (JCB) and Ryze Hydrogen.
Under the MoU signed on 31st October prior to COP26, JCB and Ryze will purchase 10% of FFI’s global green hydrogen production. Under the partnership, FFI will lead the green hydrogen production and logistics to the UK market, and JCB and Ryze will manage green hydrogen distribution and develop customer demand in the UK.
An extended offtake agreement will also be explored to provide green hydrogen to the European market, and the parties have agreed to evaluate collaboration opportunities to accelerate green hydrogen demand and establish green hydrogen and green industry manufacturing centres.
FFI green hydrogen production is anticipated to grow to 15 million tonnes/year of GH2 by 2030, reaching 50 million tonnes/year in the next decade after that. The reduction in greenhouse gas emissions associated with replacing fossil fuel with only two million tonnes of green hydrogen is the equivalent of taking over 8 million cars off the road – almost a quarter of the UK’s entire fleet.
Hydrogen, which is made from fossil fuel, is being promoted as a transition fuel, but its production causes more pollution than it saves. The agreement is a step ahead and demonstrates that green hydrogen does not need to be ‘transitioned’ via fossil fuel hydrogen.
Dr Andrew Forrest, FFI Chairman, said, “Our agreement signals the first major shift in the global commercial landscape from fossil fuels towards the real, practical, implementable solution that is green hydrogen.”
Lord Bamford, JCB Chairman, commented, “It’s fine having an engine powered by green hydrogen, but no good if customers can’t get green hydrogen to fuel their machines. This is a major advance on the road towards making green hydrogen a viable solution.”
Jo Bamford is the founder of Ryze and owner of Wrightbus. Ryze is building the UK’s first network of green hydrogen production plants, while Wrightbus built the world’s first hydrogen double-decker.
