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- Andrew “Twiggy” Forrest is planning what could be an US$8.4 billion (A$11.17 billion) “green hydrogen” investment in Argentina
- Green hydrogen is a zero-carbon fuel made by electrolysis using renewable power to split water into hydrogen and oxygen
- The project will be developed in the province of Río Negro with the aim of producing green hydrogen on an industrial scale
- A US$1.2 billion (A$1.6 billion) pilot stage aiming to produce 35,000 tons of green hydrogen has been planned for 2022 to 2024
- That will be followed by a US$7.2 billion (A$9.57 billion) first productive stage aiming to generate around 215,000 tons — enough to power 1.6 million homes
Andrew “Twiggy” Forrest is planning what could be a US$8.4 billion (A$11.17 billion) “green hydrogen” investment in Argentina, the country’s government said on Monday after a meeting between the mining billionaire and President Alberto Fernandez.
Forrest — whose iron ore company Fortescue Metals Group (FMG) is planning to be carbon-neutral by 2030 — is a major supporter of green hydrogen, a zero-carbon fuel made by electrolysis using renewable power to split water into hydrogen and oxygen.
While the method is currently more expensive than rival fuels, many hail it as a clean replacement for fossil fuels in industries that are otherwise hard to decarbonise.
FMG is looking to develop the project in the province of Río Negro with the aim of producing green hydrogen on an industrial scale, which Argentina’s government said would create more than 15,000 direct jobs.
“It is expected to turn Río Negro into a global green hydrogen export hub by 2030,” the government said.
“It is the most important international investment for our country in the last 20 years.”
Mr Forrest and President Fernandez, the government noted, met on the sidelines of the COP26 climate summit in Glasgow.
Agustin Pichot, the Latin America head of Fortescue Future Industries — FMG’s green energy unit — said at a press conference with government officials that the project would be one of the company’s most important worldwide.
“We signed a memorandum of understanding a few months ago and today we are talking about an investment of around $8 billion,” he said.
FMG will carry out an analysis of local resources such as wind, which it uses as the primary energy source to power production. Should that go as planned, public consultations and other work for construction will begin.
A US$1.2 billion (A$1.6 billion) pilot stage aiming to produce 35,000 tons of green hydrogen has been planned for 2022 to 2024, after which a US$7.2 billion (A$9.57 billion) first productive stage will aim to generate around 215,000 tons — enough to power 1.6 million homes.
