Twiggy pens multi-billion dollar green hydrogen deal

In a sign of growing momentum behind green hydrogen companies, like our investment in Province Resources (ASX:PRL), Twiggy Forrest’s Fortescue Future Industries has signed a major green hydrogen deal in Europe.

The deal between Fortescue’s renewable energy arm and E.ON, Germany’s largest energy group, is for five million tonnes per annum of Australian green hydrogen.

The hydrogen would be produced in Australia and then shipped to Germany - part of the country’s rapid shift to renewables amid an energy squeeze brought on by the country’s reliance on Russian gas.

Forrest flagged that the project would be “a minimum $50 billion expenditure.”

Given the large numbers involved in projects of this scope, there’s a vibrant debate around whether green hydrogen is viable.

We’re of the view that green hydrogen IS a viable part of the energy mix going forward, particularly as electrolyser costs come down.

Electrolysers are a type of equipment that uses electricity to split water into hydrogen and oxygen.

In the context of this technological progress, we’re pleased that PRL has delivered the scoping study we wanted to see so far this year:

Here’s why we invested in PRL.

What’s next: We want to see PRL’s partnership with Total Eren solidified in the form of a Joint Development Agreement.