Construction machinery manufacturer JCB has secured a green hydrogen supply deal with Fortescue Future Industries. The firm has signed an agreement with JCB and Ryze Hydrogen that will see it becoming the UK’s biggest supplier of green, renewable hydrogen (GH2)
The multi-billion pound deal will see JCB and Ryze purchasing 10% of FFI’s global green hydrogen production.
Commencing early in 2022, FFI’s green hydrogen production is anticipated to grow to 15 million tonnes of GH2/year by 2030, growing in the 2030s to 50 million tonnes/year.
Under the partnership, FFI will lead the green hydrogen production and logistics to the UK market, and JCB and Ryze will manage green hydrogen distribution and development of customer demand in the UK.
FFI chairman, Dr Andrew Forrest AO, said, “This landmark, first of its kind partnership will help the UK to achieve Net Zero, particularly in the hard to electrify sectors.”
“Our agreement signals the first major shift in the global commercial landscape from fossil fuels towards the real, practical, implementable solution that is green hydrogen. We are delighted to announce this groundbreaking initiative at the critical climate forum of COP26.
“The reduction in greenhouse gas emissions associated with replacing fossil fuel with only two million tonnes of green hydrogen is the equivalent of taking over 8 million cars off the road – almost a quarter of the UK’s entire fleet,” said Dr Forrest.
The agreement has been strongly backed by JCB, which called it “a major advance.”
JCB chairman Lord Bamford added: “This is an important step towards getting green hydrogen to the customer. It’s fine having an engine powered by green hydrogen, but no good if customers can’t get green hydrogen to fuel their machines. This is a major advance on the road towards making green hydrogen a viable solution.”
An extended offtake agreement will also be evaluated to provide green hydrogen to the European market, and the parties have agreed to evaluate collaboration opportunities to accelerate green hydrogen demand and establish green hydrogen and green industry manufacturing centres.
FFI CEO Julie Shuttleworth AM, said, “This is an example of the world’s first powerful, but increasing use of commerce, beginning the business world’s march to end global warming.”
“Green hydrogen is critical for the planet and good for business, a powerful fuel and ingredient in the manufacturing of a large range of industrial, difficult-to-decarbonise products. It will be fundamental in enabling the decarbonisation of heavy industry globally.”