Fortescue launches into New Zealand for green hydrogen network

Iron ore miner turned green hydrogen developer Fortescue Metals Group has partnered with gas infrastructure and energy provider Firstgas to develop new projects for the New Zealand domestic energy market.

Fortescue launched its renewables and hydrogen subsidiary Fortescue Future Industries (FFI) in 2018 which receives 10% of all profits made by the parent company for new energy projects and technology.

FFI has struck dozens of agreements to develop green hydrogen projects all around the world, including in Australia where it hopes to produce its first molecule of gas this year.

Fortescue aims to produce 15 million tonnes of green hydrogen every year by 2030, rising to 50Mt per annum in the decade thereafter.

The latest agreement with Firstgas will see feasibility and engineering studies conducted over a wide range of projects in New Zealand.

Firstgas is the biggest gas infrastructure provider in the country with over 2500km of transmission pipelines and another 2800km of distribution pipelines.

Last year, the pipeline owner announced it would transition from natural gas to hydrogen in an effort to meet the New Zealand government’s ambitious decarbonisation goal of net-zero by 2050.

Firstgas in partnership with FFI will begin by blending hydrogen into the domestic gas network from 2030.

The aim is to reach 100% hydrogen in the gas mains by 2050.

Separate to this agreement, FFI also entered into a partnership with Refining NZ – the country’s only fuel refiner.

Under that agreement, FFI would look to help decommission the Marden Point oil refinery into an industrial-scale green hydrogen production facility.