Fortescue Future Industries is looking at repurposing a New Zealand oil refinery.
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Fortescue Metals Group Limited (ASX: FMG) Future Industries is in focus today after revealing it’s looking at repurposing an oil refinery.
Fortescue Future Industries (FFI) is the green division of Fortescue which aims to decarbonise several heavy industry sectors, whilst also making green hydrogen one of the most global seaborne commodities.
Fortescue Future Industries (FFI) explores repurposing a NZ oil refinery
The green business has agreed with Refining NZ to investigate repurposing facilities at the RNZ Marsden Point oil refinery to produce green hydrogen and other green hydrogen products.
These two businesses have signed a memorandum of understanding to study the commercial and technical feasibility of producing, storing, distributing, and exporting industrial-scale green hydrogen and related products from the decommissioned site.
FFI will undertake feasibility studies which will enable various estimates for the potential project and enable the development of a timeline as well.
The advantages of the oil refinery site
The Refining NZ site has existing infrastructure such as a deep-water port, it’s close to large electricity grid connections as well as an industrial water supply.
This site is based in Marsden Point, which is close to the country’s largest city. It’s two hours north of Auckland. The oil refinery is actually New Zealand’s only oil refinery.
It was noted by Fortescue Future Industries that in November 2021, the Board of RNZ made a final decision to convert the facility into an import-only facility. This meant that around 65% of the existing site would become available for future growth opportunities once the transition had taken place. The transition is expected to take place in April 2022.
FFI Chair Dr Andrew Forrest
Dr Forrest said that FFI continues to work on turning fossil fuel emitters into zero carbon green hydrogen producers around the world. Another example of that is the plan to turn AGL Energy Ltd (ASX: AGL) power plants into green hydrogen producers from renewable energy.
Dr Andrew Forrest said:
Green hydrogen can provide all sorts of advantages to local and export economies – and is the answer our planet needs now.
Green hydrogen production at Marsden Point will potentially deliver energy security, good local jobs, and the decarbonisation of local heavy industry – all while reducing emissions for New Zealand.
RNZ also excited by the potential with Fortescue Future Industries
The boss of RNZ, Naomi James, said:
The potential of green hydrogen to support New Zealand’s energy transition is huge, so we are delighted that FFI has chosen to partner with us as we jointly to investigate what might be possible in years to come.
Fortescue Metals share price snapshot
Today, the Fortescue Metals share price is up 1.4%. In the last two months it has gone up almost 30%.
The post Fortescue (ASX:FMG) Future Industries explores NZ oil refinery repurposing appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.