Fortescue signs green hydrogen supply deal with Kawasaki and Iwatani

Iron ore producer Fortescue Metals Group has signed a deal with Japanese energy firm Iwatani and equipment firm Kawasaki Heavy Industries (Kawasaki) to supply liquid hydrogen into Japan.

The agreement will establish the Global LH2 consortium which will help the three companies collaborate in developing hydrogen production and supply capabilities.

Through the consortium, focus will be on developing renewable hydrogen products in Australia and overseas, with a view to establishing liquid hydrogen supply chains and offtake of liquid hydrogen within Japan.

Fortescue CEO Elizabeth Gaines said in a statement that the world’s transition to a clean energy future represents a major growth opportunity. Gaines also said that the partnership will help position Fortescue at the forefront of the establishment of a global renewable hydrogen industry.

“Japan has been identified as one of the priority north Asian markets for hydrogen exports,” Gaines explained.

“By leveraging our value chain and market access as well as the skills and capability of our people to rapidly develop complex projects, we believe Fortescue is well placed to meet the future demand of green hydrogen,” she said.

Kawasaki Executive Officer Dr Eiichi Harada also commented on the partnership, emphasising the role of Kawasaki in the global liquid hydrogen supply chain and their excitement for the new deal.

“In order to contribute to securing a stable energy supply and the preservation of the global environment, Kawasaki is excited to enter into a relationship and business partnership with Fortescue and Iwatani for the establishment of the Global LH2 Consortium,” said Dr Harada.

Iwatani Board Member Manabu Tsuyoshi also had similar sentiments, stressing Iwatani’s role as both a major hydrogen supplier and sole liquid hydrogen supplier in Japan.

“Since we started in the hydrogen business in 1941, we have built a nationwide hydrogen network from manufacturing to transportation, storage, supply and safety,” Tsuyoshi said.

“In order to expand our hydrogen supply capabilities and to develop new business models, Iwatani is pleased to partner with Fortescue and Kawasaki to establish future global hydrogen supply chains,” he said.

Fortescue has a portfolio of projects underway on renewable hydrogen production, including a partnership with CSIRO for the development of new hydrogen technologies and a feasibility study into a 250 megawatt green hydrogen plant in Tasmania.

Source: Fortescue Metals Group