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Fortescue Metals Group to back its extension into the green hydrogen value chain

Fortescue Metals Group to back its extension into the green hydrogen value chain

Fortescue Metals Group is set to decarbonise the company’s operations in addition to extending its reach into the hydrogen value chain following record profits.

This will see significant investment in green energy with the company having revealed on Monday (30 August) that it had achieved a record net profit of $10.3bn.

Read more: Fortescue signs option agreement with TasPorts on 250MW green hydrogen plant

Read more: Fortescue Future Industries achieves its initial decarbonisation targets using hydrogen

Within Fortescue’s FY21 Full Year Report: Investor and Analyst Call Transcript the company believe that demand for hydrogen is expected to grow in the future.

This in turn will see growth in the company’s green subsidiary, Fortescue Future Industries, with its hydrogen products set to benefit as a result of the increasing demand.

An emphasis on expanding its green hydrogen capabilities could have global benefits by reducing the cost of green hydrogen whilst also showcasing successful hydrogen applications around the world.

This could provide a surge in demand for the clean fuel.

Andrew Forrest, Founder and Chairman of Fortescue Metals, suggests that the need for green hydrogen is a vocal point for Fortescue and the company is firmly backing technology enhancements that aim to reduce its price.

When discussing the group’s customers, Forrest said, “They are saying that they need our green hydrogen, they need our green ammonia as soon as we can possibly produce in scale.

“We’re not talking about blue hydrogen or fossil fuel hydrogen which researchers and academics are beginning to question whether or not there’s any point in ever making hydrogen from fossil fuel because you create more carbon in that process than you ever saved in the hydrogen.

“So, our customer is saying, we need it to be green and we will be prepared to pay for that.”

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