E.ON, Australia’s FFI to explore green hydrogen transport to Europe

Germany’s largest energy group E.ON on Tuesday signed a memorandum of understanding with the green power arm of Australian miner Fortescue Metals to explore shipping green hydrogen to Europe and help wean itself off Russian gas.

The agreement with Fortescue Future Industries (FFI) will look at ways to ship up to 5 million tonnes of hydrogen generated from renewables to Europe per year by 2030, the two companies said in a statement.

“Green energy will reduce fossil fuel consumption dramatically in Germany and quickly help substitute Russian energy supply, while creating a massive new employment intensive industry in Australia,” FFI chairman Andrew Forrest said.

Five million tonnes per annum of renewable hydrogen roughly corresponds to one-third of the heating energy Germany imports from Russia each year. Overall, Russian gas accounted for 55% of German imports of the fuel last year.

The companies did not disclose the volume of investment that was needed to realise the project.

“The agreement between E.ON and FFI is a major step forward and puts them in a pole position for the delivery of green hydrogen to German industry,” German Economy Minister Robert Habeck said in a statement.