Fortescue to partner with Azerbaijan on green hydrogen

Fortescue Future Industries (FFI), the green energy business of Australian iron ore giant Fortescue Metals Group Ltd (ASX:FMG), will partner with Azerbaijan’s energy ministry to explore and develop green hydrogen and renewable energy projects in the country.

The signing of a framework agreement between the parties was announced on Thursday. The partnership will explore up to 12 GW of potential renewables and green hydrogen production projects in the country.

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“Despite being historically an oil and gas country, Azerbaijan is well placed to join FFI on the green industrial revolution due to its strategic location to bring green energy to European countries,” said Fortescue executive chairman and founder, billionaire Andrew Forrest.

According to energy minister Shahbazov, Azerbaijan will become an important partner for the EU, supplying renewable energy and hydrogen after oil and natural gas.

Separately, FFI this week also announced the signing of a memorandum of understanding (MoU) in relation to a hydrogen initiative in the US state of Washington with local utility Puget Sound Energy (PSE).

Earlier in 2022, FFI unveiled an idea to turn the Centralia coal mine in the state into a green hydrogen production facility, making use of the existing fossil fuel infrastructure.

Under the MoU, FFI and PSE aim to create a framework for potential green hydrogen supply agreements alongside pursuing other collaboration opportunities.

According to Josh Jacobs, PSE vice president of clean energy strategy, hydrogen could play a key role in decarbonising the electric system as well as the piped energy system. “Carbon-free, flexible resources such as hydrogen will be crucial to complement the intermittent nature of renewable energy sources like wind and solar,” Jacobs added.