Iron-ore major Fortescue Metals’ green energy arm, Fortescue Future Industries (FFI) is partnering with Papua New Guinea (PNG), to develop multiple large-scale green energy and green hydrogen projects.
The PNG government and FFI have inked a master development agreement (MDA) that will enable FFI to undertake feasibility studies to develop up to seven hydropower projects and 11 geothermal energy projects in PNG.
These projects will generate renewable electricity for the purpose of producing green hydrogen and green ammonia, creating a significant new domestic energy and export industry for PNG, which currently relies heavily on imported oil.
“Our green energy vision for PNG will lead to more jobs, a stronger economy, thriving communities and importantly, lower emissions for Papua New Guinea,” FFI CEO Julie Shuttleworth said.
“We share the Prime Minister’s vision that PNG can be at the forefront of developing hydropower and geothermal resources for the emerging global green hydrogen industry.
“We are looking forward to continuing our work alongside the government of PNG to develop these important opportunities.”
FFI’s identified projects in PNG could produce up to 2.3-million tonnes of green hydrogen a year once completed.
“These projects will completely transform PNG to become a leader in the world’s renewable energy transition,” Fortescue chairperson Dr Andrew Forrest said.
“We are committed to ensuring PNG’s communities benefit from growth and development through these projects, including training, employment and business development opportunities.”
FFI’s proposed Purari Wabo Hydropower project and West New Britain geothermal project have made significant progress with scoping studies and early-stage prefeasibility works completed.
FFI recently announced a partnership with the Kingdom of Jordan, to conduct studies on the development of green hydrogen in the region, and last week announced plans to invest as much as $8.4-billion to build a green hydrogen project in Argentina, with targeted 2.2-million-tonne-a-year production by 2030.
The company also announced plans to become the largest supplier of green hydrogen to the UK after striking a deal with construction giant J C Bamford Excavators (JCB) and Ryze Hydrogen, which will see JCB and Ryze purchase 10% of FFI’s global green hydrogen production, which is anticipated to grow to 15-million tonnes a year by 2030, accelerating to 50-million tonnes a year in the decade thereafter.