<article><p class="lead">Australia's Fortescue Future Industries (FFI) has struck an alliance with German energy infrastructure firm Tree Energy Solutions (TES), which plans to develop a green hydrogen import facility in Wilhelmshaven, Germany. FFI will invest €100mn ($99mn) in building the facility.</p><p>FFI, the green energy arm of Australia's third-largest iron ore firm Fortescue Metals, will invest a further €30mn in a subsidiary of TES, which will give FFI a 30pc stake in Deutsche Grüngas und Energieversorgung, the project company that will build the TES green energy hub. </p><p>TES is also part of a consortium that is <a href="https://direct.argusmedia.com/newsandanalysis/article/2368652">building an LNG import terminal at Wilhelmshaven</a>. </p><p>The first delivery of green hydrogen to TES' terminal in Wilhelmshaven is anticipated to take place in 2026, FFI said. Initial collaboration projects will be focused on Australia, Europe, the Middle East and Africa.</p><p>TES is developing a portfolio of terminals globally that will enable green energy transportation, FFI said. The first phase of this partnership is to jointly develop and invest in the supply of 300,000t of green hydrogen with a financial investment decision targeted in 2023, it said. </p><p>Guidance for FFI's anticipated capital expenditure in the 2022-23 fiscal year to 30 June will be revised up to $230mn from $100mn to reflect this investment. The guidance for FFI's anticipated operating expenditure of $500mn-600mn is unchanged, FFI said.</p><p>The agreement with TES follows <a href="https://direct.argusmedia.com/newsandanalysis/article/2316639">FFI's pact with German utility Eon in March</a> to supply hydrogen produced in Australia to Germany and the Netherlands. The agreement with Eon was for FFI to deliver 5mn t/yr of green hydrogen to the utility by 2030. </p><p>FFI has separately agreed with German national rail firm Deutsche Bahn (DB) to cooperate on research investigating green hydrogen and ammonia gas fuels in rail applications. Both FFI and DB have ambition to remove diesel from their operations and replace it with zero-emission solutions, FFI said.</p><p>This agreement outlines a proposal for FFI to participate in DB's research and development into a carbon-free internal combustion engine, the Perth-based firm said.</p><p>"Together FFI and DB will work to reduce global emissions given the urgency to find new ways to replace fossil fuels in the transport industry," Fortescue chairman and founder Andrew Forrest said.</p><p>The agreement with DB follows FFI's <a href="https://direct.argusmedia.com/newsandanalysis/article/2294571">acquisition of UK engineering firm Williams Advanced Engineering</a> (WAE) from private equity firm EMK Capital and Williams Grand Prix Engineering for £164mn ($187mn) in January. The deal gives FFI access to WAE's battery solutions that it hopes to use to reduce its reliance on diesel engines.</p><p class="bylines">By Kevin Morrison</p></article>
