Australia’s Fortescue Future Industries, a unit of iron ore producer Fortescue Metals Group, has agreed to invest in Belgium-based TES, the developer of an LNG and hydrogen hub in Wilhelmshaven.
With this move, Fortescue joins German energy firm E.ON and Eyal Ofer’s shipping company Zodiac Maritime and others who already invested in TES.
According to a joint statement, FFI and TES have agreed to develop “the world’s largest green hydrogen integrated project to help Europe mitigate its current energy and climate crisis and to bring green molecules to Europe”.
The first phase of this partnership is to jointly develop and invest in the supply of 300,000 tonnes of green hydrogen.
TES said the partners are working on final locations for this development and plan to take a final investment decision in 2023.
Moreover, FFI and TES have agreed terms for the Australian company to make an equity investment of 30 million euros ($29.5 million) to become a strategic shareholder in TES.
Fortescue’s unit will also invest 100 million euros for a “significant stake” in the construction of the TES import terminal in Wilhelmshaven, Germany.
To provide immediate energy security for Europe, the German Federal Ministry of Economics and Climate Protection recently selected TES, E.ON, and France’s Engie to jointly develop and implement Germany’s fifth FSRU in Wilhelmshaven.
The partners will deploy an FSRU chartered from US player Excelerate Energy in Wilhelmshaven in 2023.
In parallel, TES plans to import green hydrogen via the terminal.
TES previously said it aims to integrate the import of green molecules within the first 12 months that the FSRU is in operation.