Berlin The energy group Eon and the Australian company Fortescue Future Industries (FFI) want to bring hydrogen from Australia to Germany and other European countries on a large scale. The companies signed a corresponding letter of intent on Tuesday.
According to Eon and FFI, the aim is “to achieve the delivery of up to five million tons of green, renewable hydrogen per year to Europe by 2030”. The delivery is to start with 200,000 tons in 2024. The “historic partnership” underscores the common goal of advancing the decarbonization of Europe and strengthening the security of the supply of green energy at a time “when Europe is reducing its energy dependence on Russia so much must be reduced as soon as possible”.
With the project, the two companies are venturing into a new dimension. It is “by far the most ambitious hydrogen project in the world,” said Patrick Lammers, COO of Eon, on Tuesday in Berlin. “We are building the hydrogen bridge from Australia to Europe,” he added. Thousands of companies could benefit from this.
FFI chief Andrew Forrest said green hydrogen is a “much needed building block” for the green industrial revolution underway in Europe. At the same time, the project could help to replace Russian energy supplies.
To classify the scale of the project: Five million tons of green hydrogen per year corresponds to about a third of the heating energy that Germany imports from Russia every year.
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For many industrial sectors – such as steel, chemicals or cement – the goal of climate neutrality can only be achieved if they can use climate-neutral hydrogen on a large scale, which replaces fossil fuels. Hydrogen is also essential for applications in heavy-duty, shipping and air traffic.
Lammers emphasized that the project will make green hydrogen accessible to large parts of the economy. “Many medium-sized companies cannot conclude their own purchase agreements,” he said. The project fills this gap.
Medium-sized companies also have access to hydrogen from Australia
FFI will produce the hydrogen and will be responsible for transporting it to Europe. Eon will distribute it and bring it to the end user. Eon operates the distribution of gas and electricity on a large scale. The company is one of the largest distribution network operators in Europe with around 1.6 million kilometers of electricity and gas networks in nine European countries, of which it is the largest distribution network operator with around 800,000 kilometers in Germany.
Katherina Reiche, Chairwoman of the National Hydrogen Council, also emphasizes this special character of the project: “We are taking a big step for Germany, the Netherlands and Europe with this,” she said. The climate-neutral hydrogen can now be spread widely.
The joint project by Eon and FFI is not the first of its kind, but it is the most ambitious to date. The chemical company Covestro had already concluded a supply agreement with FFI in mid-January. According to this, the Australians should deliver green hydrogen to the people of Leverkusen from 2024. 100,000 tons per year are planned.
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FFI is one of the pioneers in the market. Numerous German companies, including several Dax companies, are in contact with the manufacturer. There is “strong interest from Germany,” Forrest said recently. Only in mid-November last year did the head of the FFI meet with high-ranking representatives of well-known companies, including BASF, Linde, RWE, Thyssen-Krupp and Uniper, in the Federal Ministry of Economics.
Forrest has announced massive investments in the production of green hydrogen. The transport is to be by ship. According to industry experts, appropriate transport options could be available from 2023. The first ships are being tested, and there are various technologies to choose from. For example, the hydrogen may first be converted into ammonia. This leads to conversion losses; however, the ammonia transport has been tried and tested in practice.
Australia is well suited as a hydrogen production country because large amounts of renewable energy can be generated there at reasonable prices – due to the abundance of sunshine and wind power on the coasts. In Germany, there is not only a lack of the appropriate systems, the electrolysers, but also of cheap electricity from renewable sources. Most experts assume that Germany will not be able to cover its need for green hydrogen from its own production. Partnerships with countries like Australia are therefore supported by politicians.
The federal government has set itself the goal of significantly expanding the national hydrogen strategy adopted by the previous government. Federal Minister of Economics Robert Habeck (Greens) therefore welcomes the plans of Eon and FFI: “The race to produce and transport green hydrogen on a large scale has picked up speed.” The agreement between Eon and FFI is an important step, he said.
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