The renewable and green energy segment of Fortescue Metals Group Limited (ASX: FMG) has bought a 60% stake in a Dutch based energy technology company.
Fortescue has ambitious 100% green energy targets. Fortescue Future Industries (FFI) is the dedicated segment of Fortescue’s business tasked with bringing this goal into reality.
FFI has made tangible progress, achieving initial targets in multiple areas. One of its main targets is the goal of 15 million tonnes of green hydrogen globally by 2030.
Earlier this week Fortescue also announced a target for net zero Scope 3 emissions by 2040.
FFI buys 60% stake in Dutch energy tech company
FFI said that it has acquired a 60% stake in High yield Energy Technologies Group (HyET). FFI said that this acquisition is an important milestone in the company’s vision to produce affordable green hydrogen.
Management said that this acquisition builds on its commitment to develop technologies needed to tackle emissions and global warming.
FFI has also provided the majority of financing for the expansion of HyET’s Dutch Solar PV factory.
The other shareholders of HyET have agreed to work on other current and future HyET activities.
FFI Chief Executive Officer Julie Shuttleworth said: “FFI’s goal is to become the world’s leading, fully renewable energy and green products company.
“We have commenced the design study for a 1GW Powerfoil factory in Australia and at this scale, we aim to rapidly drive costs down at a greater rate than is achievable with conventional Solar PV technology.”
Environment focus
Fortescue Chairman and FFI Founder Dr Andrew Forrest is a driving force in advocating for environmental change across the business world. He is also not shy of impact investing, with his private investment group Tattarang having a strong set of values.
Commenting on the stake in HyET, Dr Forrest said:
“Green energies need to be available at an industrial, global scale. We don’t have time to wait, we have to act now.
“The technologies of the HyET companies will help us to reach that tipping point and the world will begin the journey in earnest to become zero-carbon.”
Final thoughts on the Fortescue share price
This announcement wasn’t released directly to the ASX and the financial numbers weren’t disclosed. So presumably this was a smaller move for the company. However, it is an important step for the future technologies that Fortescue will use.
The Fortescue share price is up almost 2% at the time of writing, after falling substantially over recent months due to the fall in the iron ore price.
I am a fan and investor in Fortescue for its FFI segment. Fortescue working towards being a developer of the green technology used in the future is compelling. Especially as the world continues to expect green energy and renewables as a priority in businesses.
