Fortescue and Covestro sign green H2 dealJanuary 19, 2022
FFI has announced that it has signed a potential supply deal with the German polymer producer.
Fortescue Future Industries (FFI) has stepped up its strategy to become a leading global green H2 supplier through a possible supply deal with Covestro, a polymer producer from Germany.
The companies have signed a memorandum of understanding (MoU) for supplying Covestro.
Earlier this week, FFI announced that it had signed an MoU with Covestro in which it would supply the German company with as much as 100,000 ton of green hydrogen per year. Covestro is a company that makes a range of different polyurethane and polycarbonate materials. The renewable H2 would be used for replacing the H2 supplies Covestro already uses but that are produced using fossil fuels. That new clean supply will begin in 2024.
Andrew Forrest, chair of FFI, stated that the MoU, which opens the door for the companies to begin negotiating terms for the supply deal, had the sought-after potential for the delivery of substantial greenhouse gas emission reductions for Covestro’s facilities across North America, Europe and Asia.
The green H2 deal will provide a substantial decarbonization opportunity in 3 continents.
“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 Forrest. “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.”
Forrest also went on to point out that “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.”
Markus Steilemann, CEO at Covestro, also released a statement about the MoU recently signed with FFI, explaining that the green hydrogen will support the company in its efforts to boost its product sustainability and reduce its greenhouse gas emissions by as much as 900,000 tons annually.
“Our collaboration with FFI underlines our ambition to pioneer the transition towards a circular economy and climate-neutral production. Green H2 and its derivatives play a key role for the chemical industry, both as an alternative feedstock and a source of clean energy,” said Steilmann.
Indeed the FFI strategy to emerge as a global green H2 supplier constitutes a great break through for industrializing low income economies especially the Sub Saharan Africa. Constituting a pioneering deal in green H2 driven industrialization is the MoU with Covestro which could be a precursor for low income industrializing economies in Southern and Sub Saharan Africa. The much debated and already confirmed beyond Africa by development partners is the African Continental Free Trade Area (AfCFTA) flagship program of the African Union, whose industrialization programs for member states stands to benefit much from the FFI strategy and emerge as a stronger and trusted player in the global economy. However this much depends on the degree of receptiveness of African member states/ leadership on one hand and to a larger extent research, advocacy and training; as well as funding for those with the zeal to drive this noble project [Global green H2 and FFI strategy , etc] on a short, medium and long term. Famba Zion. God bless.