Fortescue Future Industries, a division of Fortescue Metals Group Limited (ASX: FMG), announced this month it’s going to work with the Kingdom of Jordan.
Fortescue Future Industries to partner with Kingdom of Jordan
Fortescue’s green division, FFI, is partnering to conduct studies with the idea of developing green hydrogen production through potential large scale wind and solar energy production facilities.
Fortescue Future Industries said this was the first step in establishing production and will position Jordan as a future leader of renewable energy production.
The Jordanian Minister of Environment Dr Muawieh Khalid Radaideh said:
“Because of the abundance of both solar and wind power we can create in the Kingdom, Jordan has incredible renewable energy potential, as well as the potential to become a leader in producing and exporting green hydrogen and green ammonia.
“The Kingdom is committed to a greener future, and our partnership with FFI is part of our dedication to an energy transition.”
Fortescue Future Industries CEO Julie Shuttleworth said that Jordan’s solar and wind power, located close to an operational port, make it an attractive location for production of green hydrogen and green ammonia. Ms Shuttleworth also said:
“The world has come together here at COP26 to solve the climate crisis, and that needs real, concrete actions. FFI is committed to building thriving communities by delivering social, environmental and economic benefits, and we look forward to working with the Kingdom of Jordan in this new venture.”
Potential investment agreement
FFI will study the possibilities of large-scale solar and wind production.
The agreement provides FFI with a minimum initial area of land for preliminary studies comprising 450 square kilometres for potential solar production, 1,000 square kilometres for potential wind energy production, and 1.5 square kilometres within an industrial zone for potential downstream production facilities.
Depending on the outcome of FFI’s studies, Fortescue Future Industries and Jordan may then negotiate the terms of an investment agreement to develop and construct a green hydrogen and/or green ammonia production facility on that land.
Summary thoughts on Fortescue Future Industries
FFI continues to announce intriguing projects that could make economic value and help the world as well. I think Fortescue Future Industries makes Fortescue a very interesting ASX share to consider, particularly if some of these ideas turn into real-world initiatives.
I’m looking to add more Fortescue shares to my portfolio, at the right price.
