More than doubled its planned capital expenditure for its green energy arm as it added a new project in Germany, bolstering a push to deliver cleaner fuels to Europe.
The Fortescue Future Industries unit will invest $130 million with Tree Energy Solutions, known as TES, to become a partner in a gas import terminal and planned green energy hub in Wilhelmshaven, Germany. The Perth-based company said on Wednesday that FFI will take a 30% stake in a TES unit under the plans.
The partners are hoping to supply 300,000 tons of green hydrogen into the TES terminal in the first phase in 2026, with the goal being to provide 300,000 tons in an initial phase.
Fortescue the world is No.1 as a result of the plans. The previous $100 million estimate flagged in August shows that 4 iron ore exporters will spend $230 million on capital expenditure in the year through June 2023, up from the $230 million estimate in August.
The United Kingdom and Europe need green solutions to replace fossil fuels and this investment will enable Europe to do exactly that, according to Andrew Forrest, the billionaire founder and executive chairman of Fortescue.
Fortescue previously said it would target production of 15 million tons of hydrogen a year by the year 2030, which would require the construction of around 200 gigawatts of renewable energy capacity, and has struck deals for possible projects in locations such as Australia and Canada.
The company kept its guidance on FFI's annual operating expenditure unchanged at $500 million to $600 million.
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