EU disaster opens alternative for Australian inexperienced power exports -Fortescue

SYDNEY – The power disaster in Europe presents an enormous alternative for Australia to export extra inexperienced power, the CFO at Fortescue Future Industries (FFI) mentioned on Thursday.

European nations are pushing to spice up renewable power sources amid an power disaster to maneuver away from Russian fuel. Nations are additionally searching for methods to chop power consumption and fill their fuel shops in preparation for cooler climate and any cut-off of Russian provides.

“There’s a large alternative for us to export inexperienced power into Europe … They’re completely demanding it,” mentioned Man Debelle, CFO at FFI, on the Citi Annual Funding Convention in Sydney.

Fortescue Metals Group and green-energy unit FFI are attempting to develop infrastructure and expertise to provide inexperienced hydrogen because the miner shifts from a pure-play iron ore producer to a inexperienced power firm.

Fortescue signed a memorandum of understanding with Germany’s largest power group E.ON earlier this yr to discover transport inexperienced hydrogen.

“European governments usually, and the German authorities particularly, (are) pushing actually onerous and throwing so much at it due to the scenario they discover themselves in with the power disaster and their dependency on Russian fuel,” Debelle mentioned.

“There’s a lot extra E.ON’s on the market throughout Europe. So there’s a massive demand for inexperienced power,” he mentioned.

Australia, nevertheless, dangers being left behind if it doesn’t get help from the federal government, he mentioned.

The introduction of the Inflation Discount Act (IRA) by the US this yr, as an example, “turbo-charged” the market with subsidies for the price of inexperienced power, he mentioned.

Europe can be bringing laws that provides incentives for the usage of inexperienced hydrogen, he mentioned.

“The danger (for Australia) is that we might have the rug pulled out from below us if different nations get there first.”

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