Fortescue Investing $8.4B In Argentinian Green Hydrogen Project
Argentine President Alberto Fernández said during COP26 that the Fortescue Metals Group would be investing $8.4 billion in green hydrogen production in Argentina.
According to the president’s statement, it is expected to see Río Negro produce 2.2 million tons of green hydrogen annually.
An Argentinian delegation consisting of Fernández, Productive Development Minister Matías Kulfas, Foreign Minister Santiago Cafiero, Secretary for International Economic Relations Cecilia Todesco, and Kulfas' adviser Marcelo Kloster met with Fortescue representatives on Tuesday.
The company was represented by President Andrew Forrest, CEO Julie Shuttleworth, President for Latin America Agustín Pichot, Senior Global Manager Todd Clewett, and Regional Manager Sebastián Delgui.
Fortescue has already begun prospecting in the province of Río Negro to produce green hydrogen at an industrial scale. The $8.4 billion investment is expected to create over 15,000 direct jobs and between 40,000 and 50,000 indirect sources of income.
The development is expected to turn Río Negro into a global green hydrogen export pole by 2030, with a production capacity of 2.2 million tons per year, equal to almost 10 percent of the electricity consumed by Germany in one year.
“Argentina has a great opportunity ahead and it needs companies like this, that invest and generate work. Green hydrogen is one of the fuels of the future and it fills us with pride that Argentina is one of the countries that are at the forefront of the ecological transition,” Fernández said.
“Our country will shortly be able to become one of the world suppliers of this fuel that will allow to drastically reduce carbon emissions in the world,” he added.
The project will be developed around the city of Sierra Grande, which has a history of iron ore production. The first productive stage, with an estimated investment of $7.2 billion, will produce some 215,000 tons of green hydrogen, which would cover the electricity consumption of 1.6 million homes, and will run until 2028.
Before this, Fortescue will carry out a pilot stage with an estimated investment of $1.2 billion which will produce 35,000 tons of green hydrogen. The pilot is believed to start in 2022 and end in 2024.
”We are ready to invest in Argentina, we are a cutting-edge energy company that hires people and we train people, and that is what we want to do in your country. We are here so that Argentina is a world leader in renewable energy and to be an exporter,” Fortescue President Andrew Forrest stated.
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