Andrew Forrest’s iron ore and green energy giant Fortescue Metals has announced a “landmark” joint venture to create a massive renewable energy, and green hydrogen, ammonia and manufacturing hub in the north Africa country of Morocco.
The joint venture has been signed with Morocco-based OCP Group, a phosphate company with $US9 billion in revenue and which plans to spend $US13 billion over the coming three years to reach 100 per cent renewable energy by 2027, on the way to “carbon neutrality” by 2040.
The two companies are looking to supply green hydrogen, ammonia and fertilisers to Morocco and Europe, and other international markets. It includes the potential to establish manufacturing facilities in Morocco.
There was no immediate indication of the scale of the projects,
“Together, we will be a key originator and green corridor into Europe and to and from the Atlantic basin,” Forrest said in a statement after attending the signing ceremony in Morocco.
“Morocco will be a major player in the global energy transition given it is home to some of the world’s most prospective wind and solar resources, two large coastlines, and is in close proximity to Europe and the Americas.”
The announcement comes one day after Fortescue formally opened its hyrdrogen electrolyser manufacturing facility in Gladstone, which will make its own in-house electrolysers and will have capacity of around 2 GW a year.
Forrest has huge ambitions for green hydrogen production with a target of producing 15 million tonnes a year by 2030, and is looking at a series of massive projects in Australia, Norway, the US, Africa and south America.
Fortescue has reached FID on two smaller green hydrogen projects, including an 80 MW electrolyser at the Phoenix Hydrogen Hub in the US and a 50 MW green hydrogen production project in Gladstone, but bigger plans such as the 550 MW Gibson Island electrolyser to produce green hydrogen and ammonia appear stalled.
Fortescue is also working towards reaching “real” zero in its iron ore operations in the Pilbara by 2030, which means not burning fossil fuels for either power or transport and machinery, and has a range of renewable, battery storage and electrification projects underway at its sites.
“We intend to create in Morocco one of the world’s leading integrated renewable energy, manufacturing, and technology enterprises,” Mark Hutchinson, who heads Fortescue Energy, said in a statement.
“This is a very significant moment for Fortescue, OCP Group and Morocco as we help revolutionise the way we power our planet and diversify the world’s future energy security, while creating thousands of jobs and industries in Morocco.“
The agreement canvasses four major areas.
1. Large-scale integrated green ammonia and green fertilizer production capacity, including renewables, energy generation, electrolysis, ammonification and fertilizer production;
2. Manufacturing of green technology and equipment;
3. An R&D and Technology Hub, located alongside Mohammed VI Polytechnic University (UM6P) near Marrakech, with research in renewable energy, green hydrogen and minerals processing; and
4. Collaboration of corporate venture capital funds to drive investment in key technology advancements.
OCP Group chairman and CEO Mostafa Terrab described the deal with Fortescue as a step towards “fulfilling our vision of simultaneously ensuring global food security and combating climate change.”
The venture is subject to “customary closing conditions,” including regulatory approvals.
