A major ASX 200 company has just been selected as preferred partner for a green hydrogen project, and it’s not Fortescue Metals Group Limited (ASX: FMG).
Woodside Energy Group Ltd (ASX: WDS) has been chosen to move forward to the development stage on this multi-billion dollar project.
Fortescue shares are flat at the time of writing and fetching $19.04. Woodside shares are down 2% today and currently trading at $36.21. For perspective, the S&P/ASX 200 (ASX: XJO) is currently down 0.01%.
Fortescue misses out to Woodside
Meridian Energy Ltd (NZE: MEL), with the support of the NgÄi Tahu people, has chosen Woodside for the development stage of the Southern Green Hydrogen project in New Zealand.
A final investment decision on the project will be made after the development stage. The green hydrogen plant is set to cost about $4.5 billion dollars.
Fortescue, through its subsidiary Fortescue Future Industries (FFI), was on the shortlist of development partners for the project, Stuff NZ reported in February.
Fortescue has a plan to achieve carbon neutrality by 2030, and sees green hydrogen as a key to this goal.
However, Woodside has been chosen after a competitive bidding process. Commenting on the news, Woodside CEO Meg O’Neill said:
We are pleased to have been selected as the preferred partner for the proposed SGH project. Woodside brings the technical skill and operations experience to develop this project at pace to meet customer demand for hydrogen, which we expect to grow in the energy transition.
We look forward to working with Meridian and Mitsui to potentially offer this important customer solution both domestically and globally.
Mitsui & Co., Ltd (TYO: 8031) is also in talks to join the project to develop the market for ammonia offtake. Mitsui has the largest share of ammonia imports into Japan.
Woodside, Meridian and Mitsui will look to commence front-end engineering design for the project, subject to commercial arrangements.
Share price snapshot
The Woodside share price has soared 70% in the past year, while Fortescue shares have climbed 8%.
For perspective, the ASX 200 has lost 0.23% in the last year.
The post Did Fortescue just lose out on this multi-billion dollar green hydrogen project? appeared first on The Motley Fool Australia.
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More reading
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- Up 30% in a month, why the Fortescue share price could have further to run: fundie
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- Where will Fortescue shares be in 5 years?
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Motley Fool contributor Monica O’Shea 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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