PERTH (miningweekly.com) – The green energy arm of iron-ore miner Fortescue Metals, Fortescue Future Industries (FFI) has flagged a long-term green hydrogen supply agreement with German high-tech polymer materials supplier, Covestro.

Under a memorandum of understanding (MoU), the two companies will formalise an agreement under which FFI will supply Covestro with the equivalent of up to 100 000 t/y of green hydrogen.

The arrangement will enable Covestro to reduce its greenhouse gas emissions by up to 900 000 t/y of carbon dioxide, by replacing grey hydrogen and its derivatives with green hydrogen.

The deliveries are earmarked for three potential locations: Asia, North America and Europe, and could commence by 2024.

“This is a ground-breaking collaboration which reinforces the power of green hydrogen to accelerate the decarbonisation of some of the most energy-intensive industries around the world,” FFI chairperson Dr Andrew Forrest said.

“FFI and Covestro share the belief that green hydrogen and green ammonia will play a crucial role in enabling companies to reach their climate targets and preventing runaway global warming.

“We look forward to working with Covestro to supply their green hydrogen needs, and collaborating with Germany to enable it to become the world leader in global decarbonisation, green hydrogen and ammonia.”

Covestro CEO Dr Markus Steilemann said that the company’s collaboration with FFI underlines its ambition to pioneer the transition towards a circular economy and climate-neutral production.

“Green hydrogen and its derivatives play a key role for the chemical industry, both as an alternative feedstock and a source of clean energy.

“The transition towards green hydrogen and its derivatives will be an important step forward in our efforts to offer more sustainable products that also reduce the carbon footprint of our customer industries,” Steilemann concluded.