The Fortescue Metals Group Limited (ASX: FMG) share price is rising. Fortescue Future Industries (FFI) revealed it has designed and built its own electrolyser.
FFI is the division of Fortescue that is aiming to make large amounts of green hydrogen and other green products for the industrial world.
Fortescue Future Industries designs and builds its own electrolyser
FFI has made industrial grade hydrogen for the first time using an electrolyser designed and built by FFI.
Fortescue Future Industries has developed a number of new electrolyser technologies that will form part of their electrolyser patent ‘family’.
FFI is working towards a target of producing 15 million tonnes of green hydrogen per year by 2030. The projects it’s working on will inform FFI’s electrolyser technology selection.
The green division said that the stack that produced the hydrogen is a pressurised alkaline system. The internally designed supporting hydrogen gas management system is fully operational and will be used to test all of FFI’s prototypes and designs.
This was actually achieved before the stretch target date that had been set. It’s not the first time this has been achieved – earlier this year FFI retrofitted a huge mining haul truck to run on hydrogen, producing only steam, in just 130 days. The leadership noted how this is representative of the hard work that’s happening across the entire business.
FFI said it’s in the process of installing solar panels at FFI’s Dawson Road facility which will mean the electrolyser will be able to produce green hydrogen in 2022.
FFI leadership comments
FFI Chief Executive Officer Julie Shuttleworth said:
“This is another outstanding achievement from our FFI in-house scientists and engineers – who are continuing to break new ground.
“The FFI team has designed and operated our own electrolyser system which will be key to developing FFI’s green hydrogen production into the future.”
Summary thoughts on the Fortescue share price
Fortescue is taking a sizeable risk by going so heavily after the green hydrogen market. But it’s quickly making ground and becoming a leading light in the green industrial space. There are sure to be some bumps along the way, but if it works out it could create enormous value for the company and also help the world too.
The Fortescue share price has performed well recently, though the iron ore price probably doesn’t justify the level of strength in recent weeks. But the green side of Fortescue could play a bigger and bigger role as the months roll on.
I’m not looking to buy shares today, though I’ll think about it if it drops more than 10% from here.
