Fortescue Future Industries (FFI) will become the largest supplier of green hydrogen (GH2) to the United Kingdom after signing a multi-billion pound deal with construction giant J. C. Bamford Excavators (JCB) and Ryze Hydrogen (Ryze).
Under a memorandum of understanding signed prior to the climate conference, COP26, JCB and Ryze will purchase 10% of FFI’s global green hydrogen production.
Commencing early in 2022, FFI’s green hydrogen production is anticipated to grow to 15 million tonnes of GH2 per year by 2030, accelerating in the 2030s to 50 million tonnes per year.
Under the partnership, FFI will lead the green hydrogen production and logistics to the UK market, and JCB and Ryze will manage green hydrogen distribution and development of customer demand in the UK.
FFI Chairman, Dr Andrew Forrest AO, said: “This landmark, first of its kind partnership will help the UK to achieve Net Zero, particularly in the hard to electrify sectors.
“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. We are delighted to announce this groundbreaking initiative at the critical climate forum of COP26.
“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 – almost a quarter of the UK’s entire fleet.”
The agreement has been strongly backed by JCB, which called it “a major advance.”
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.”
Jo Bamford, 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.