Why are Fortescue and green hydrogen making news again on Friday?

A girl holding a globe shouts into a green megaphone about climate change.A girl holding a globe shouts into a green megaphone about climate change.

Fortescue Metals Group Limited (ASX: FMG)’s green energy venture, Fortescue Future Industries is looking to spin a retired coal mine into a green hydrogen production facility.

Fortescue founder and chair, Andrew Forrest said the project could help North America transform into another “global green energy heartland”.

Let’s take a closer look at how the green hydrogen leader could shift gears at the coal-fired power plant.

Fortescue Future Industries eyes ageing coal asset

Fortescue’s green hydrogen leg has signed an agreement with the Industrial Park at TransAlta – located in the US state of Washington – under which it will explore the potential production of green hydrogen at the site of the state’s last coal-fired power plant.

The park sits adjacent to the Centralia power plant. It’s earmarked for closure in 2025.

FFI believes transforming the site into a green hydrogen production facility could birth a hydrogen hub in the United States’ Pacific Northwest region.

The futuristic fuel’s production facility might appear odd alongside the fossil fuel-powered relic.

However, it could help to decarbonise some of the United States’ hard-to-abate sectors like long-haul trucking, ports, aviation, and heavy industry, according to FFI North America CEO, Paul Browning.

Forrest commented:

Repurposing existing fossil fuel infrastructure to create green hydrogen to power the world is part of the solution to saving the planet.

The signing of this agreement is another important step in … implement[ing] the technologies carbon emitters need to reach net zero.

The green energy entity intends to employ those working at the soon-to-close power plant at the proposed facility. FFI is also looking to apply for a US Department of Energy Hydrogen Hub Program grant alongside other stakeholders.

It’s the latest in a string of coal-fired power plants FFI has flagged for future re-purposing. In fact, it’s not even the first time Forrest has labelled a region a future “global green energy heartland”.

He previously used the stirring term when describing Australia’s Hunter Valley. There, FFI is exploring generating green hydrogen at AGL Energy Limited (ASX: AGL)’s Liddell and Bayswater coal-fired power stations.

Right now, the Fortescue share price is $19.17, 0.84% higher than its previous close. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is recording a 1.5% gain.

The post Why are Fortescue and green hydrogen making news again on Friday? 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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