Australia's Fortescue enters long term green hydrogen supply deal with Germany's Covestro

Australia’s iron ore miner Fortescue Metals Group said on Monday it had signed an agreement with Germany’s Covestro for the long-term supply of green hydrogen and its derivatives, including green ammonia.

FFI will supply Covestro with the equivalent of up to 100,000 tonnes of green hydrogen (GH2) per year, the company said in a statement. The German company then uses hydrogen and its derivatives in the production of high-performance polymers.

“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,” said FFI Chairman Dr Andrew Forrest AO.

Under the agreement, Covestro will be able to reduce its greenhouse gas emissions by up to 900,000 tonnes of CO2 per year, by replacing grey hydrogen and its derivatives with GH2.

“This collaboration reinforces that green hydrogen is a practical, implementable solution for a range of difficult-to-decarbonise industries,” FFI CEO Julie Shuttleworth said in the statement.

Under the deal, FFI will supply Covestro in Asia, North America and Europe, and the supply could commence by 2024.