Fortescue Metals Group Limited (ASX: FMG) and Airbus have signed an agreement to develop a green hydrogen plane.
If you haven’t heard of Fortescue Future Industries (FFI) before, it’s a segment of Fortescue that is also looking to decarbonise heavy industry through areas like green hydrogen
and renewable energy through its Fortescue Future Industries (FFI) business.
Fortescue to work with Airbus
The diversified mining and green energy business has revealed that they have joined forces to create a working alliance to help the aviation industry to decarbonise with green hydrogen.
They have come together because both FFI and Airbus want to bring into the world a green hydrogen-based aircraft by 2035. FFI points out that green hydrogen, unlike other forms of hydrogen, is made from water using 100% renewable electricity.
The two businesses have signed a memorandum of understanding (Mou) at Airbus’ headquarters in Toulouse in France. The MoU allows both companies to collaborate closely, as one focused taskforce to use green hydrogen in the aviation industry.
There are a number of challenges
FFI said that it will work with Airbus to look at challenges around green hydrogen regulations, infrastructure and global supply chains – from the production of green hydrogen, right through to its delivery to airports and transfer onto aircraft.
FFI stated it will provide cost outlook and technology drivers on the various elements of the supply chain and will build infrastructure deployment scenarios for the supply of green hydrogen to targeted airports. Airbus will provide characteristics on fleet energy usage, scenarios for hydrogen demand in aviation, refueling specifications and aviation regulatory framework.
Leadership comments
FFI founder and Chairman, Dr Andrew Forrest AO, said that globally, flying accounts for over 2.5% of global emissions:
We are all citizens of a global world. People want to travel, reunite with family and friends and explore new places without being forced to pollute the planet. The problem isn’t travel, the problem is how we fuel our planes and ships – all of that must turn emissions free. No greenwash, no mirage, just 100 per cent green.
Look no further than my home country of Australia to see the disasters of our changing environment. The catastrophic floods on the east coast are being described as “one-in-1000-year events,” which means that every year there is just a 0.1% chance of a flood of that severity happening. Australia’s climate has already warmed on average by almost 1.5°C since 1910, and these extreme events are going to occur more frequently if industry doesn’t come together to decarbonise quickly and completely.
Final thoughts on Fortescue Future Industries
Getting the aviation industry onto green hydrogen would significantly increase the global demand, which would be great for FFI.
I’m not sure if the Fortescue share price is a buy right now, considering the strength of the iron ore price. But if iron and/or Fortescue shares were to drop then I would be interested in adding to my existing position.
