Fortescue share price dips despite green hydrogen milestone ‘worth celebrating’

The Fortescue Metals Group Ltd (ASX: FMG) share price is down 0.38% in lunchtime trading, fetching $20.95 per share.

It’s a bit of a tough day across the market, with the S&P/ASX 200 Materials Index (ASX: XMJ) down 0.22% at this same time.

The iron ore miner likely attracted the attention of ESG-focused investors today after announcing it has opened Western Australia’s first green hydrogen refuelling station. But that hasn’t kept the Fortescue share price from dipping into the red.

Fortescue share price dips despite green hydrogen milestone

The green hydrogen refuelling station is located at ATCO Australia’s Clean Energy Innovation Hub in Perth. It was officially opened by Western Australia premier Mark McGowan and minister for hydrogen industry Alannah MacTiernan.

If you’re wondering why it’s labelled ‘green hydrogen’, that’s because the hydrogen is produced using renewable electricity through electrolysis. The station is intended for hydrogen fuel cell vehicles, with commercially available combustion hydrogen vehicles still likely a number of years off.

Fortescue reported that the H2 Refueller can refuel a Toyota Mirai with green hydrogen in less than five minutes and support up to 500 kilometres of emissions-free travel.

Commenting on the milestone, Fortescue CEO Andrew Forrest said:

Green hydrogen is a practical, implementable solution that we all need to help combat global warming and our mission at Fortescue is to make this renewable alternative to fossil fuels available at a global scale and at competitive cost. 

Forrest noted that this represents just the first small step, yet it’s one “worth celebrating”.

“We are very proud of this project which is the embryonic start of a huge new industry across the globe. While this may be a small drop in the ocean, it is nonetheless worth celebrating,” he said.

ATCO Australia country chair Patrick Creaghan added, “The milestone showcases a real testament of industry and government partnering to kickstart a hydrogen economy.”

How has Fortescue been tracking?

The Fortescue share price is up 21% over the past 12 months. That far outpaces the 1% gains posted by the S&P/ASX 200 Index (ASX: XJO) over the full year.

The post Fortescue share price dips despite green hydrogen milestone ‘worth celebrating’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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