FFI to become UK's largest supplier of green hydrogen

Fortescue Future Industries (FFI) will become the largest supplier of green hydrogen (GH2) to the United Kingdom after signing a multibillion-pound deal with construction giant J C Bamford Excavators (JCB) and Ryze Hydrogen (Ryze).

Under a memorandum of understanding signed prior to the COP26 climate conference, JCB and Ryze will purchase 10% of FFI’s global green hydrogen production.

FFI’s green hydrogen production is anticipated to grow to 15 million tonnes of GH2 per year by 2030, accelerating to 50 million tonnes per year in the next decade thereafter.

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 development of customer demand in the UK.

FFI is a subsidiary of Fortescue Metals Group and a global green energy and green industry company committed to producing zero-emission green hydrogen from 100% renewable sources.

“This landmark, first-of-its-kind partnership will help the UK to achieve net zero, particularly in the hard-to-electrify sectors,” said FFI Chairman Andrew Forrest. “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. We are delighted to announce this groundbreaking initiative at the critical climate forum of COP26.

“The reduction in greenhouse gas emissions associated with replacing fossil fuel with only 2 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.”

The agreement has been strongly backed by JCB, which called it “a major advance”.

“This is an important step towards getting green hydrogen to the customer,” said JCB Chairman Lord Bamford. “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, widely regarded as the UK’s green hydrogen champion, 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.

“This is a monumental deal, not just for us but for the UK as a whole. We have chosen to partner with the global leaders in green hydrogen and it is fabulous that two countries, the UK and Australia, can come together to create a brighter future,” said Bamford. “We are walking the walk on green hydrogen and now we want the government to show its commitment to the sector by investing in buses, trains, trucks, ships, aircraft and the entire green hydrogen supply chain.

“At best, any hydrogen made from fossil fuel is being promoted as a transition fuel, but the production of it causes more pollution than it saves. This agreement demonstrates that green hydrogen does not need to be ‘transitioned’ via fossil fuel hydrogen. Production of it can commence at once, to meet the needs of all mobility. I have asked Andrew to deliver to me immediately that he has the capacity, and he has agreed.”

An extended offtake agreement will also be evaluated 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.

“This deal reinforces the inexorable march of green hydrogen as the fuel of the future,” said FFI Chief Executive Officer Julie Shuttleworth. “Green hydrogen is critical for the planet and good for business; a powerful fuel and ingredient in the manufacturing of a large range of industrial, difficult-to-decarbonise products. It will be fundamental in enabling the decarbonisation of heavy industry globally.”

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