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The Bitcoin (CRYTPO: BTC) price put in a tremendous show in October, hitting a new all-time high of US$66,930 (AU$90,445) on 20 October.

Since then, the Bitcoin price has retraced 5.9%, currently trading for US$62,966.

So, a bit of a loss for crypto investors who bought right at the high and are looking to sell today. Or, as is becoming more common, perhaps buying something with their digital currency today.

Over the longer-term

As for investors who bought 8 years ago and held on? Well, you likely won’t hear them complaining.

On 5 July, 2013, the Bitcoin price stood at US$66, according to data from CoinMarketCap. That works out to a gain of 95,993% at today’s prices.

Getting back to October…

What drove the Bitcoin price gains in October?

On 1 October, the Bitcoin price was right at US$42,914. By the time Halloween festivities wound down on 31 October, Bitcoin was trading for US$60,699. That’s a gain of more than 41% for the month.

What helped propel the Bitcoin price higher in October?

While many factors were at play, the biggest tailwind for the token last month looks to be the launch of the first (and later in October the second) US futures-based Bitcoin exchange traded fund (ETF).

The ProShares Bitcoin Strategy ETF (NYSE: BITO) began trading in US markets on Tuesday 19 October, the first Bitcoin linked ETF off the rank. (Full details here.)

Commenting on the launch, Simeon Hyman, global investment strategist at ProShares said at the time:

We are really excited to bring BITO, the first Bitcoin-linked ETF, to investors as an important opportunity for them conveniently to invest in Bitcoin in their regular brokerage account. This is going to allow many people who have been waiting for an easy way to do this and a robust way to do this to now be involved and have it in their portfolios.

While that was in the latter half of the month, rumours that United States Securities and Exchange Commission (SEC) chairman Gary Gensler was poised to greenlight the ETFs were widely circulating early in October. Gensler had said that crypto investors should receive the same levels of safety measures as traditional share market investors.

As for November, today’s Bitcoin price action (it’s up 4.2% in 24 hours) likely wasn’t hurt by the announcement from Commonwealth Bank of Australia (ASX: CBA), which revealed it will begin offering crypto services to its customers.

The post Why did the Bitcoin (CRYPTO:BTC) price have such a great month in October? appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services
• Did an Aussie invent Bitcoin? The $86 billion question facing a US court
• Here’s why cryptocurrencies could take over the world: expert
• ASX’s first cryptocurrency ETF is listing Thursday
• Shiba Inu crashes 28% as Dogecoin soars. What’s next for the dog coins?

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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The AMP Ltd (ASX: AMP) share price has been the best performer on the ASX 200 on Wednesday.

In early afternoon trade, the financial services company’s shares are up 9% to $1.17.

Why is the AMP share price storming higher?

Investors have been bidding the AMP share price higher today following the release of a divestment announcement.

That announcement reveals that the company has agreed a deal with Resolution Life Group for its remaining 19.13% stake in Resolution Life Australasia (RLA).

According to the release, AMP will sell the stake to Resolution Life Group for a consideration of $524 million. Though, as part of the agreement, AMP and RLA have agreed to settle a number of post-completion adjustments and certain claims. This resulted in a net payment of $141 million to RLA from AMP.

And while this will mean an additional one-off expense of approximately $65 million in FY 2021, the deal ultimately strengthens AMP’s available capital by approximately $459 million.

Management notes that this provides the company with further flexibility ahead of its planned demerger of AMP Capital’s Private Markets business. That demerger is expected to complete in 2022. It will see the investment business pivot to become a separate, global private market investment manager and compete alongside some of the largest managers in the space.

AMP’s Chief Executive, Alexis George, commented: “This divestment brings to a close our long and proud involvement in life insurance in Australia and New Zealand. It enables us to realise capital to further strengthen our balance sheet ahead of our demerger and continue supporting our businesses.”

“The separation of our businesses is progressing well and will continue until mid-next year as planned. We will continue to provide transitional services to RLA, as agreed, and will have a shared customer and adviser connection into the future,” she added.

The AMP share price is down 26% in 2021 despite today’s strong gain.

The post AMP (ASX:AMP) share price leaps 9% on life insurance sale appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps
• AMP (ASX:AMP) share price on watch following $500m divestment
• Why did the AMP (ASX:AMP) share price have such a great month in October?
• Why has the AMP (ASX:AMP) share price leapt 17% in a month?
• What this broker thinks of the AMP (ASX:AMP) share price after its update

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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The FBR Ltd (ASX: FBR) share price is taking off on Wednesday after the company announced its bricklaying robot could soon be employed in Mexico.

Following a successful pilot program, the company has signed a term sheet with one of Mexico’s largest homebuilders, GP Vivienda. The agreement will see FBR’s Hadrian X construction robot building up to 5,000 homes.

The news has seemingly excited the market. At the time of writing, the FBR share price is 5 cents, 25% higher than its previous closing price.

Let’s take a closer look at today’s news from the construction robotics company.

Here’s what’s boosting the FBR share price today

The FBR share price is rocketing higher on news the company will be supplying its ‘wall-as-a-service’ technology to a major homebuilder.

FBR will supply wall-as-a-service for between 2,000 and 5,000 homes, subject to several factors, including market conditions and GP Vivienda’s pipeline.

According to FBR, wall-as-a-service marks a shift from selling bricks and bricklaying labour separately. Instead, the company’s wall-as-a-service entity supplies the blocks and robotically constructs walls onsite using digital architectural plans.

The company states its wall-as-a-service will improve speed, accuracy, and safety, as well as reducing waste when constructing brickwork.

The wall-as-a-service will be priced to allow each home to be “commercially competitive”.

Before the program begins, the companies will create a timeline to deploy the bricklaying robot at particular sites. Each site will see it building at least 100 homes.  

The only binding part of the term sheet is its 24-month exclusivity period. The rest of the term sheet will remain non-binding until formal documentation and numerous milestones are complete.

Such milestones include confirmation FBR’s Hadrian X and Fastbrick Wall System are compliant with Mexico’s regulations and the easing of COVID-19 travel restrictions.

The companies will also create a collaborative commercial model and undergo a pilot building program of 20 homes.

FBR’s managing director and CEO, Mike Pivac, commented on the news driving the company’s share price today, saying:

The volume of work contemplated under the term sheet will give us a great start from which to grow our business in North America, as there will be a strong pipeline of work to complete as soon as we deploy.

The post Here’s why the FBR (ASX:FBR) share price is leaping 25% today appeared first on The Motley Fool Australia.

More reading

• These three ASX shares smashed 52-week highs today
• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps
• CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services
• Why is the Fortescue (ASX:FMG) share price charging higher today?
• Which ASX shares are involved with green hydrogen?

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 Bruce Jackson.

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ASX shares keep on giving to investors despite a plethora of negative catalysts circling global financial markets.

After a choppy month or so, the benchmark S&P/ASX 200 Index (ASX: XJO) has warded off inflationary pressures, panic around bond yields and economic downturn, and found form once again.

It has rebounded off its low of 7,185 points on 1 October to climb another 3.43% to 7,431.5 points at the time of writing.

And these three ASX shares have been riding the wave today, with each posting new single-year highs in early trading.

Ramsay Healthcare (ASX: RHC)

Shares in global hospital giant Ramsay Healthcare have accelerated in almost vertical fashion from mid-October to post a new 52-week high today.

At the time of writing, the Ramsay Healthcare share price was trading up around 1.2% at $72.71 but has climbed more than 10% since bouncing off a low of $65.94 last month.

Investors have been piling into Ramsay shares as the NSW and Victorian state governments ease COVID-19 restrictions that were impacting hospital patient turnover.

After it was confirmed that surgical restrictions were eased last month, the trend was set for the healthcare giant.

As such, Ramsay shareholders have enjoyed another 3% in gains to start November and will no doubt be happy after securing a new yearly high today.

Aristocrat Leisure Ltd (ASX: ALL)

Shares in global gaming specialist Aristocrat also reached new single-year highs today, hitting an intraday high of $49.59 in early trading.

At the time of writing, Aristocrat shares were changing hands at $49.40 apiece, a further 2.49% gain from the open.

Investors have been bidding up the company’s share price after a slew of market updates with the company aggressively expanding its footprint in Australia and abroad.

For instance, late last month, Aristocrat confirmed it had successfully completed an entitlement offer to raise approximately $1.3 billion via an institutional placement.

The funds will be used in the acquisition of London-listed gambling software and content supplier Playtech, a $5 billion company that reported revenue of $2.3 billion and EBITDA of $586 million in FY19.

Brokers were quick to jump on the case, with investment firm Morgans immediately increasing its price target on Aristocrat shares to $52.90.

This implies a further upside potential of around 8% from the current market price.

Computershare Ltd (ASX: CPU)

Shares in financial administration company Computershare also nudged past their 52-week high in early trading today. The Computershare share price is now at $19.44 after tipping a high of $19.51 earlier in the session.

Despite no market-sensitive information out of Computershare’s camp in the last month, investors were still happy to acquire a position in the company and send its shares 7% higher in that time.

Curiously, the company’s share price retreated in September, corresponding with the announcement its founder Chris Morris will leave the board effective from 11 November.

His replacement is John Nendick, an expert in financial modelling and accounting, according to Computershare.

It seems investors were impressed by the company’s swift response in finding a suitable candidate to take Morris’ position on the board.

And with Morris’ departure just a week away, investors have maintained the upward trajectory in Computershare’s share price today.

Bringing it all together, these three ASX shares are each compounding returns this week, which is sure to be of great pleasure to shareholders.

The post These three ASX shares smashed 52-week highs today appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX healthcare shares in October
• 3 fantastic ASX shares that could be buys in November
• Why is the Aristocrat (ASX:ALL) share price dipping on Monday?
• Why AMP, Aristocrat, Brainchip, and Healius shares are racing higher
• ASX 200 (ASX:XJO) midday update: Aristocrat hits record high, Flight Centre sinks

The author Zach Bristow has no positions 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 recommended Ramsay Health Care Limited. 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on track to record a very strong gain. The benchmark index is currently up 1.4% to 7,425.4 points.

Here’s what is happening on the ASX 200 today:

CBA enters crypto market

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today amid improving investor sentiment. Also potentially giving the banking giant’s shares a boost was news that it is entering the crypto market. CBA will offer customers the ability to buy, sell and hold crypto assets, directly through the CommBank app. The pilot will start in the coming weeks, with CBA intending to progressively rollout more features to more customers in 2022.

AMP divestment

The AMP Ltd (ASX: AMP) share price is racing higher today after announcing the divestment of its 19.13% equity interest in Resolution Life Australasia (RLA). AMP has agreed to sell the stake to Resolution Life Group for a consideration of $524 million. The sale of the RLA holding will complete AMP’s exit from its former life insurance and mature business, AMP Life, which it sold to Resolution Life in 2020 for a total consideration of $3 billion. Management notes that the sale provides further flexibility ahead of its planned demerger of AMP Capital’s Private Markets business.

Lithium miners charge higher

One area of the market that is performing particularly positively on Wednesday is the lithium sector. The shares of Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) are among the best performers, rising strongly today. Investors appear optimistic that clean energy investment will be given a major boost at the COP26 meeting this week.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the AMP share price with an 8% gain. This follows its divestment update. The worst performer has been the Crown Resorts Ltd (ASX: CWN) share price with a modest decline of just over 1%. This is despite there being no news out of the casino and resorts operator.

The post ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services
• Why is the Northern Star (ASX:NST) share price having such a lousy week?
• AMP (ASX:AMP) share price on watch following $500m divestment
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro owns shares of Orocobre 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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Commonwealth Bank of Australia (ASX: CBA) is breaking new virtual ground.

This morning, CBA announced it will offer crypto services to its customers.

In an Australian first, the bank’s customers will be able to buy, sell and hold cryptocurrencies via CommBank’s app. This will include trading and holding Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

CBA reported that it is partnering with global crypto exchange Gemini and leading blockchain analysis firm Chainalysis. Gemini was founded by twin brothers Cameron and Tyler Winklevoss.

The bank intends to commence the pilot program within weeks and will then introduce additional features next year. Atop Bitcoin and Ethereum, CommBank said customers will have access to up to 10 selected cryptos. This will include Bitcoin Cash (CRYPTO: BCH) and Litecoin (CRYPTO: LTC).

What did CBA management say?

Commenting on the crypto services rollout, CBA CEO Matt Comyn said:

The emergence and growing demand for digital currencies from customers creates both challenges and opportunities for the financial services sector, which has seen a significant number of new players and business models innovating in this area.

We believe we can play an important role in crypto to address what’s clearly a growing customer need and provide capability, security and confidence in a crypto trading platform.

A word from Gemini and Chainalysis

Gemini’s global head of business development, Dave Abner, added:

We are proud to be providing exchange and custody services to CBA as they begin to unlock access to cryptocurrency investments for many Australians.

The exponential growth of digital assets internationally, coupled with Gemini’s institutional-grade security and proactive regulatory approach, positions this partnership to set a new standard for banks and financial platforms in Australia and across the globe.

Furthermore, Chainalysis CEO Michael Gronager noted that:

Financial institutions like CBA play an integral role in growing cryptocurrency adoption safely.

Meanwhile, on the topic of safety, CBA’s Matt Comyn said:

Customers have expressed concern regarding some of the crypto services in market today, including the friction of using third party exchanges, the risk of fraud, and the lack of trust in some new providers.

This is why we see this as an opportunity to bring a trusted and secure experience for our customers.

The post CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps
• Did an Aussie invent Bitcoin? The $86 billion question facing a US court
• Leading brokers name 3 ASX shares to sell today
• Which ASX bank shares were the best performers during October?
• It’s been a great 2021 so far for the CBA (ASX:CBA) share price

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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The Fortescue Metals Group Limited (ASX: FMG) share price is performing positively on Wednesday.

In morning trade, the mining giant’s shares are up 2.5% to $14.40.

What’s going on with the Fortescue share price today?

Fortescue’s shares are rising on Wednesday despite another pullback in iron ore prices on Tuesday night.

According to Metal Bulletin, the price of benchmark 62% fines fell US$7.66 or 7.4% to US$95.77 per tonne. It was a similar story for the low grade iron ore that Fortescue predominantly mines. The 58% fines iron ore price fell US$6.24 or 8.4% to US$67.70 per tonne.

However, it appears as though a pullback in the Fortescue share price on Tuesday afternoon had already factored this in.

But why are its shares rising?

Today’s gain by the Fortescue share price could be due to growing interest in Fortescue Future Industries and its exposure to green hydrogen, as well as a delayed reaction to a bullish broker note out of Bell Potter yesterday.

In respect to the latter, according to the note, the broker has retained its buy rating but trimmed its price target to $19.75.

In addition, Bell Potter is forecasting a very generous $2.25 per share fully franked dividend in FY 2022.

Based on the current Fortescue share price, this suggests that there is potential for a whopping ~53% total return for investors over the next 12 months.

Why is the broker positive?

The note reveals that Bell Potter’s analysts were pleased with the company’s performance during the quarter and continue to see a lot of value in its shares at the current level. Particularly given its strong free cash flow generation, which it expects to support big dividends.

Bell Potter concluded: “Strong free cash flows, good cost control and an ‘on-track’ production performance emphasise the quality of the business and we retain our Buy recommendation.”

The Fortescue share price is down 42% in 2021.

The post Why is the Fortescue (ASX:FMG) share price charging higher today? appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are involved with green hydrogen?
• What’s the latest on Fortescue Future Industries and green hydrogen?
• Here are the 3 most heavily traded ASX 200 shares so far on Tuesday
• This broker thinks the Fortescue (ASX:FMG) share price is dirt cheap
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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Green hydrogen has been the talk of Australia lately and it’s no different on the ASX.

Hydrogen is made ‘green’ when the electrolysis process through which it’s created is powered using renewable energy. Thus, it’s possible to create zero-carbon hydrogen.

The renewable commodity is part of the Australian Government’s plan to reach net-zero emissions by 2050.

According to the Australian Renewable Energy Agency, green hydrogen could help Australia reduce carbon emissions in high-temperature industries such as steelmaking, as well as in some transport sectors.

The agency is also looking to find if the renewable commodity could power Australian homes.

Clean hydrogen is also being explored as part of Australia’s National Hydrogen Strategy. The strategy aims to see the nation exporting renewable hydrogen by 2030.

Finally, the government of Western Australia, the world’s largest iron ore producing region, began an investigation into a ‘green’ steel future on Monday. The governments of New South Wales and Queensland have also jumped on board the green hydrogen-powered train in recent weeks.

So, which ASX shares are involved in the seemingly up-and-coming green hydrogen sector? Let’s take a look.

ASX green hydrogen-focused shares

Fortescue Metals Group Limited (ASX: FMG)

Market watchers might be wondering how one of the world’s largest iron ore producers made this list. As it so happens, the company’s Fortescue Future Industries division earned it its spot.

Fortescue Future Industries is building a hydrogen-equipment manufacturing centre in Queensland, where it will produce electrolysers. Electrolysers create the electrolysis process.

The renewable-energy focused body is also looking to build hydrogen plants around the world and has a goal of producing 15 million tonnes of the clean commodity by 2030.

Sparc Technologies Ltd (ASX: SPN)

While Fortescue is focusing on producing electrolysers and green hydrogen, Sparc is scrapping both.

It’s working to create ‘ultra’ green hydrogen using only sunlight and a reactor.

Thus, it will bypass the need to capture energy – no matter how renewable – for the process of producing hydrogen.

Sparc announced its new ambition, which it’s pursuing in partnership with the University of Adelaide, last week.

Province Resources Ltd (ASX: PRL)

Finally, a more ‘traditional’ ASX green hydrogen stock.

Province Resources operates the HyEnergy Zero Carbon Hydrogen Project, located at Carnarvon, Western Australia.

Recently, Province began an export feasibility study to look at using Global Energy Ventures Ltd‘s (ASX: GEV) compressed hydrogen ships to export green hydrogen from the project.

The post Which ASX shares are involved with green hydrogen? appeared first on The Motley Fool Australia.

More reading

• Why is the Fortescue (ASX:FMG) share price charging higher today?
• What’s the latest on Fortescue Future Industries and green hydrogen?
• Here are the 3 most heavily traded ASX 200 shares so far on Tuesday
• This broker thinks the Fortescue (ASX:FMG) share price is dirt cheap
• Top brokers name 3 ASX shares to sell next week

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has had a rather volatile week or so over the past 5 trading days. Since last Wednesday, the ASX 200 has gone backwards by around 0.3%. That’s despite the healthy 1.38% bump the index is enjoying so far today (at the time of writing). But one ASX 200 share that’s fared far worse over the past week has been the Northern Star Resources Ltd (ASX: NST) share price.

Northern Star shares are today up 0.55% so far at $9.08 a share. But over the past week, this ASX 200 gold miner has lost around 2% of its value. Since last Thursday, it’s been a loss of 4.3%.

That’s a performance that severely trails the broader market. So what’s going on with Northern Star?

Why has the Northern Star share price had such a lousy week?

Well, our first clue is the gold price itself. As a gold miner, Northern Star’s fortunes are intrinsically tied to the price of the precious metal it mines. So, according to Bloomberg, gold has indeed fallen in value over the past week. Gold spot prices were asking just under US$1,800 an ounce a week ago. But today, the yellow metal is going for US$1,787 an ounce. That’s a small but not insignificant drop of roughly 0.72%.

Another factor to consider is inflation. There has been much talk of inflation and higher interest rates over the past week or so. Just yesterday, the Reserve Bank of Australia (RBA) abandoned its ‘yield curve controls’ and is now expecting to raise interest rates in 2023 rather than the previously-flagged 2024.

This is relevant to the Northern Star share price since gold is an asset that is greatly affected by interest rate rises. That’s because gold pays no yield. Thus, its appeal theoretically diminishes if other ‘safe’ assets like government bonds are paying higher interest rates.

So, if it’s macro-factors like the gold price and the threat of higher inflation and interest rates that are holding Northern Star shares down, then surely Northern Star wouldn’t be the only ASX gold miner struggling over the past week? Indeed, that seems to be the case. Other ASX gold miners like Perseus Mining Limited (ASX: PRU) and Newcrest Mining Ltd (ASX: NCM) have also gone backwards by similar amounts since last Wednesday.

So if you own Northern Star shares, you can probably place at least part of the blame for the past week at a lower gold price and higher inflation expectations.

At the current Northern Star share price, this ASX 200 gold miner has a market capitalisation of $10.55 billion and a dividend yield of 2.1%.

The post Why is the Northern Star (ASX:NST) share price having such a lousy week? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• How did the Woodside Petroleum (ASX:WPL) share price perform in October?
• Real estate shares are leading the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining 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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The Fortescue Future Industries (FFI) business within Fortescue Metals Group Limited (ASX: FMG) has made more progress when it comes to green hydrogen.

FFI is looking to take a global leadership position in the renewable energy and green products industry and has a vision to make green hydrogen the most globally traded seaborne commodity in the world.

Hydrogen deal in the UK

With a lot of action happening around the climate conference, COP26, Fortescue Future Industries has signed a deal to become the largest supplier of green hydrogen to the UK with a multi-billion pound contract deal with the construction giant J C Bamford Excavators (JCB) and Ryze Hydrogen.

JCB and Ryze will buy 10% of FFI’s global green hydrogen production, under a signed memorandum of understanding.

FFI’s hydrogen production is anticipated to grow to 15 million tonnes of green hydrogen by 2030, accelerating to 50 million tonnes per year in the next decade.

Under the partnership, FFI will lead the green hydrogen production and logistics to the UK, whilst JCB and Ryze will manage green hydrogen distribution and development of customer demand in the UK.

Fortescue Future Industries said that the deal was “strongly backed” and that JCB called it a “major advance”.

An extended offtake agreement will also be evaluated to provide green hydrogen to the European market, and the parties have agreed to evaluate collaboration opportunities to accelerate green hydrogen demand and establish green hydrogen and green industry manufacturing centres.

What projects are JCB and Ryze working on?

Jo Bamford, which Fortescue Future Industries said is widely regarded as the UK’s green hydrogen champion, is the founder of Ryze and owner of Wrightbus. Ryze is building the UK’s first network of green hydrogen production plants, while Wrightbus built the world’s first hydrogen double decker.

FFI quoted the JCB Chairman, Lord Bamford, said:

This is an important step towards getting green hydrogen to the customer. It’s fine having an engine powered by green hydrogen, but no good if customers can’t get green hydrogen to fuel their machines. This is a major advance on the road towards making green hydrogen a viable solution.

At best, any hydrogen made from fossil fuel is being promoted as a transition fuel, but the production of it causes more pollution than it saves. This agreement demonstrates that green hydrogen does not need to be ‘transitioned’ via fossil fuel hydrogen. Production of it can commence at once, to meet the needs of all mobility. I have asked Andrew to deliver to me immediately that he has the capacity, and he has agreed.

How much will this the planet?

The FFI Chair Dr Andrew Forrest explained that the reduction in greenhouse gas emissions associated with replacing fossil fuel with only two million tonnes of green hydrogen is the equivalent of taking over 8 million cars off the road, which equates to around a quarter of the UK’s entire fleet.

Dr Forrest also said:

Our agreement signals the first major shift in the global commercial landscape from fossil fuels towards the real, practical, implementable solution that is green hydrogen.

Fortescue Future Industries has announced a number of other initiatives this year, including the construction of a global green energy manufacturing centre in Gladstone, Queensland. The first stage development is an electrolyser factory with an initial capacity of two gigawatts.

The post What’s the latest on Fortescue Future Industries and green hydrogen? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares so far on Tuesday
• This broker thinks the Fortescue (ASX:FMG) share price is dirt cheap
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to buy next week
• Is the Fortescue (ASX:FMG) share price a buying opportunity?

Motley Fool contributor Tristan Harrison owns shares of 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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