Fortescue Future Industries (FFI) has signed an agreement with JCB and Ryze Hydrogen, which will see it become the UK’s largest supplier of green, renewable hydrogen.
On 31 October, the Australian firm announced that it had signed a multi-billion-pound deal with JCB and Ryze. It will see the pair purchase 10% of FFI’s global green hydrogen production, which it expects to grow to 15mn tonnes per year by 2030, before accelerating to reach 50mn tonnes a year in the following decade.
The memorandum of understanding, which was signed ahead of COP26, will see FFI lead the green hydrogen production and logistics to the UK market, while JCB and Ryze manage distribution and development of customer demand.
An extended offtake agreement is also being considered, which would see FFI provide green hydrogen to the European market, with the parties further agreeing to evaluate collaboration opportunities to accelerate green hydrogen demand and establish green hydrogen and green industry manufacturing centres.
JCB Chairman, Jo Bamford, said: “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.”
