Fortescue announces $8.4B hydrogen investment in Argentina

Fortescue Metals Group has announced a multi-billion potential green hydrogen project in Argentina during a meeting with Argentina President Alberto Fernández, alongside the COP26 world summit in Glasgow, UK.

Fortescue has started prospecting to produce green hydrogen on an industrial scale in the Argentinean province Río Negro. The project will be developed around Sierra Grande, which has a history of iron ore production. Fortescue will analyse the quantity and quality of winds and begin with an agreement signed with the Ministry of Productive Development and the Nation and the Government of the Province of Rio Negro.

Once it has been determined that the wind resource and other resources are feasible for the project, public consultations and procedures for the project’s construction will be started. The project will be completed in three stages and will require an investment of US$ 8.4 billion, and will create over 15,000 direct jobs and up to 50,000 indirect jobs.

The pilot stage, which will run between 2022 and 2024, will see an investment of US$ 1,200 million. The pilot project aims to produce about 35k tonnes/year of green hydrogen.

The first productive stage completed by 2028, with an investment of US$ 7.2 billion, will produce some 215k tonnes/year of green hydrogen.

The project is expected to make Río Negro a major hydrogen hub on the world map by 2030, and once fully completed, it will have a production capacity of 2.2 million tonnes/year.

Argentina President Alberto Fernández said,” In a short time our country will be able to become one of the world suppliers of this fuel that will allow to drastically reduce carbon emissions in the world.”

Andrew Forrest, Chairman of Fortescue, added, “We are ready to invest in Argentina, we are a cutting-edge energy company that hires people and trains people, and that is what we want to do in your country. We are here so that Argentina is a world leader in renewable energy and to be an exporter.”