Fortescue Metals Group Limited (ASX: FMG) is reportedly in discussions with Egypt’s prime minister about potential green hydrogen opportunities.
According to reporting by Ahram Online, Fortescue founder Andrew Forrest was in Cairo on Monday to meet with Mostafa Madbouly.
Why is Fortescue thinking about green hydrogen?
Fortescue Future Industries (FFI) is the division of Fortescue that is looking to decarbonise Fortescue’s operations.
But, it also wants to invest to create a global portfolio of green energy projects to supply 15 million tones per year of renewable green hydrogen by 2030.
Potential Egypt projects
Ahram Online reported that Egypt is keen on exploring opportunities to work with international partners in renewable and “especially green hydrogen”.
The Egyptian prime minister said that Egypt is going to announce a national strategy to grow the production, use and export of clean energy, particularly green hydrogen. In November 2022, Egypt will be hosting COP27, the UN conference about the climate.
It was reported by Ahram Online that Egypt wants Fortescue to “establish and expand” green hydrogen projects in Egypt. One example given was the Benban Solar Park in Aswan in Upper Egypt. This is where there are 32 solar energy projects that come with a total capacity of 1,465 MW.
Dr Forrest reportedly said that the ASX share is ready to start putting money into Egypt to make green hydrogen energy. He said that Egypt is an ideal choice to make green hydrogen, become a regional hub and export that energy to Europe.
The meeting supposedly ended with an agreement between Fortescue and Egypt to finalise a plan for these proposed projects to be done in Egypt.
Fortescue Future Industries has been busy
It has been a busy few months for the business.
FFI recently completed the acquisition of Williams Advanced Engineering (WAE). It’s being vertically integrated into Fortescue and will be managed by FFI. WAE has critical technology and expertise in high-performance battery systems and electrification to help decarbonise Fortescue.
The WAE acquisition will also establish a significant new global battery growth business opportunity for Fortescue.
The ASX share has also announced a zero-emission infinity train – it’s developing a regenerating battery electric iron ore train.
It will use gravitational energy generated on the downhill loaded sections of the iron ore miner’s rail network to recharge its battery electric systems, without any additional charging requirements for the return trip to reload. This self-sustaining system will increase operational efficiency, lower maintenance costs and eliminate diesel and CO2 emissions from Fortescue’s iron ore trains.
The post What’s going on with Fortescue (ASX:FMG), green hydrogen and the Egyptian prime minister? appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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