The companies will work together to deliver 5 million metric tons of hydrogen a year by 2030, they said in an emailed statement on Tuesday, after signing a memorandum of understanding in Berlin. The fuel will be produced using renewable power in Australia and will be distributed by E.ON. The agreement comes as Europe tries to wean itself off Russian gas in response to the invasion of Ukraine.
The agreement comes as Europe tries to wean itself off Russian gas in response to the invasion of Ukraine. While 5 million tons of hydrogen would be equal to about a third of the energy Germany imports from Russia, there are still multiple logistical, infrastructure and financing hurdles to be overcome.
Fortescue’s billionaire founder Andrew Forrest estimates the project would require $50 billion of expenditure and the company is talking to banks, institutional investors, export credit agencies and other global institutions over project funding, the producer said in a Wednesday statement.