Iron ore giant and green energy aspirant Fortescue Metals has signed a Memorandum of Understanding (MOU) with Canadian hydrogen company HTEC for a green hydrogen project in Canada that will target domestic and export markets.
Fortescue has a green hydrogen and green ammonia production facility in British Columbia (BC) currently in the pipeline. HTEC would purchase that hydrogen to be used in refuelling stations for the transport market.
Fortescue submitted the proposal for the production facility – called “Project Coyote – in the town of Prince George in BC. If approved, the facility would produce approximately 140,000 tonnes of hydrogen and 700,000 tonnes of ammonia per year.
However, the $US2 billion dollar project would require 1,000 MW of power from BC Hydro to create the from electrolysis.
If all does go ahead, HTEC will purchase the hydrogen from Fortescue for use in vehicles. HTEC was the first company to establish and operate a hydrogen refuelling station network in Canada, and are now looking at forming a larger supply chain.
“This is a big step towards building Canada’s first domestic green hydrogen supply chain, which will not only help meet ambitious emissions targets, but also generate significant economic activity, jobs and training opportunities,” said Fortescue Canada Country Manager, Stephen Appleton.
“We commend the governments of Canada and British Columbia for their vision to establish a globally-significant green hydrogen sector and look forward to continuing our discussions with them toward securing this investment.”
Fortescue has been spending a large amount on green hydrogen, recently investing more than $1.1 billion worth of green hydrogen and iron projects around the world.
Earlier this year, Fortescue noted it was still aiming for an ambitious target of 15 million tonnes of green hydrogen a year by 2030. However, despite increased spending and work around the world, almost no green hydrogen has yet been produced by the company.
The company’s most advanced project is located in Pheonix, Arizona, where Fortescue has recently spent $US24 million to buy the company behind a proposed green hydrogen project that aims to produce 12,000 tonnes a year of green hydrogen through an 80MW electrolyser.
Fortescue has estimated it emits more than 2.5 million tonnes of CO2 equivalent each year from its mining operations, including shipping and tug boat operations, but is looking to get to ‘real zero’ emissions, instead of just ‘net zero’.
