Fortescue Future Industries (FFI) will partner with Papua New Guinea, one of the most renewable energy-rich countries in the world to develop multiple large-scale green hydrogen projects.
Fortescue Future Industries Ltd and PNG yesterday, Friday 5th of November, 2021 signed a Master Development Agreement (MDA) that will enable FFI to undertake feasibility studies to develop up to seven hydropower projects and 11 geothermal energy projects in PNG.
Minister for Energy and Rural Infrastructure, Saki Soloma signed the agreement with the Principal of Fortescue Futures Industries, Dr Andrew Forrest, for transition to alternative sources of cleaner energy.
“These augurs well with my Government’s initiative to promote Green Energy by 2030 and transition into a carbon neutral country by 2050 as stated in our country’s Vision 2050,” Minister Soloma said.
He stated that these projects would generate renewable electricity for the purpose of producing green hydrogen and green ammonia, creating a significant new domestic energy and export industry for PNG, which heavily relies on imported oil.
FFI Chief Executive Officer, Julie Shuttleworth said: “Our green energy vision for PNG will lead to more jobs, a stronger economy, thriving communities and importantly, lower emissions for PNG.
“We share Prime Minister, James Marape’s vision that PNG can be at the forefront of developing hydropower and geothermal resources for the emerging global green hydrogen industry.
“We are looking forward to continuing our work alongside the Government of PNG to develop these important opportunities,” Ms Shuttleworth said.
FFI’s identified projects in PNG could produce up to 2.3 million tonnes of green hydrogen per year once completed.
Fortescue Chairman, Dr Andrew Forrest AO said, “These projects will completely transform PNG to become a leader in the world’s renewable energy transition.
“We are committed to ensuring PNG’s communities benefit from growth and development through these projects, including training, employment and business development opportunities,” Dr Forrest said.
FFI’s proposed Purari Wabo Hydropower and West New Britain Geothermal projects have made significant progress with scoping studies and early-stage pre-feasibility works completed.
FFI is a values-based business committed to enriching communities through economic growth, gender equality of employment and education, and ending exploitation and modern slavery.
“We are proud that our investment contracts place human rights, environment and then economics, in that order, in every discussion we have with every government in the world,” Ms Shuttleworth said.
“FFI will also undertake extensive community, landowner and stakeholder engagement to develop a detailed national content plan as part of its stakeholder investment strategy.”
FFI’s projects will be conducted in full compliance with PNG laws and adhere to strict international best practice standards relating to the conservation and protection of the environment, biodiversity and cultural heritage, occupational health and safety, anti-bribery and corruption, anti-money laundering and eradicating modern slavery.