Could Fortescue Future Industries’ green hydrogen help Europe ditch Russian energy?

a female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.a female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.

Fortescue Metals Group Limited (ASX: FMG)’s green hydrogen focused leg, Fortescue Future Industries (FFI), could provide a major alternative energy source for Europe.

That would allow the continent – and the world – to ease its dependence on Russian energy commodities and block the Kremlin from “conduct[ing] war games”, says Fortescue Metals and FFI founder and chair, Dr Andrew ‘Twiggy’ Forrest.

And Forrest says FFI already has the agreements in place to replace much of Europe’s gas with green hydrogen. Let’s take a look at how FFI could overhaul the European energy sector.

Could FFI green hydrogen replace Russian fossil fuels?

Green hydrogen could help combat Russian-born conflicts, and FFI’s agreements in Germany, the United Kingdom, and France could be part of the solution, Forrest recently told ABC Radio.

“People all over Europe [and] North America are just sick to the back teeth that they have to buy their fuel from wars in the Middle East and wars in Eastern Europe,” Forrest said.

“They’re saying, ‘why can’t we just get all our fuel, get all our critical energy … from nations like us nations who are democratic, nations who believe in the freedom of humanity?’

“And the answer is you can. In fact, you must, because there’s a real practical viable alternative and that’s green hydrogen.”

Forrest noted FFI’s multibillion-dollar deal with German energy network operator, E.ON could see FFI sending 5 million tonnes of green hydrogen to Germany each year.

That’s enough calorific energy to replace a third of the nation’s Russian gas imports.

“Green hydrogen … can replace everything which Russia produces in fossil fuel. That, of course, interrupts the Kremlin’s ability to conduct war games,” Forrest told ABC Radio.

FFI has also inked a similar agreement that could see it shipping 1.5 tonnes of green hydrogen to the United Kingdom each year. That would make the green energy producer the UK’s major hydrogen suppler.

Finally, FFI has shaken on a deal with France-based aircraft manufacturer, Airbus. The deal is expected to see zero-emissions aircraft taking to the sky.

Fortescue share price snapshot

The Fortescue Metals share price is struggling on the ASX today.

It’s currently down 6% on its previous close and almost 2% lower than it was at the start of 2022.

It has also fallen around 15% since this time last year.

The post Could Fortescue Future Industries’ green hydrogen help Europe ditch Russian energy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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 Scott Phillips.

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