Energy

JCB signs multibillion-dollar deal to distribute and supply green hydrogen

JCB signs multibillion-dollar deal to distribute and supply green hydrogen

Summary

  • Fortescue Future Industries, based in Australia, claims to be the UK’s largest provider of green hydrogen
  • While green hydrogen’s promise is exciting, it is not without its challenges
  • Just last month, Siemens Energy‘s CEO told reporters that there was “no commercial rationale” for it right now

Signing a deal with JCB for a good cause

In the United Kingdom, a multibillion-dollar arrangement for the supply and distribution of green hydrogen is gaining traction. This is one of the most recent examples of how the sector is beginning to pique the interest of major corporations.

Fortescue Future Industries, based in Australia, said over the weekend that it would become the United Kingdom’s largest supplier of green hydrogen. It signed a Memorandum of Understanding (MoU) with JCB and Ryze Hydrogen, a construction equipment company. Fortescue called it a “multi-billion-pound agreement,” but he wouldn’t say how much it cost.

JCB and Ryze will purchase 10% of FFI’s global green hydrogen output under the arrangement. The British companies will handle distribution in tandem with the “growth of client demand” in the United Kingdom.

“This is a critical step toward getting green hydrogen to the customer,” stated JCB Chairman Anthony Bamford.

“Having a green hydrogen-powered engine is great, but it’s useless if customers can’t access green hydrogen to fuel their machines,” Bamford said. “This is a significant step forward in making green hydrogen a viable option.”

Investments and Associated Production

JCB announced in October that it would invest £100 million ($136.5 million) in a study to develop “super-efficient hydrogen engines.” Jo Bamford, Bamford’s son, is the founder and executive chairman of Ryze.

Hydrogen can be created in a variety of ways, including electrolysis. Some refer to this process as green or renewable hydrogen if the electricity utilized in it comes from a renewable source like wind or solar.

FFI, a part of Australia’s Fortescue Metals Group Ltd, expects to produce 15 million metric tonnes of green hydrogen per year by 2030. This will entail considerably more than simply increasing production to 50 million metric tonnes per year.

With Green Plans, come challenges

“We must set boundary conditions that make these applications and this technology commercially feasible,” Bruch told reporters.

“And we require a low-cost electrical environment, as well as sufficient renewable energy in this regard.” He contended that it wasn’t there yet.

Bruch also emphasized the significance of establishing an industry to enable green hydrogen commercialization.

An operational knowledge and technical systems designed over 10 – 15 years were essential, he explained. This is a normal observance by an individual in the industry.

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