Government signs Deed of Agreement with FFI

The Government yesterday signed a landmark agreement with one of world's biggest companies to venture into 'green energy' with the potential to revolutionize power generation and supply in the near future.

In another bold move to "Take Back PNG", the Government signed the 'Deed of Agreement' yesterday with Australian company Fortescue Metals Group (FMG), the world’s fourth largest producer of iron ore.

 

The Minister for State Enterprises William Duma and Founder/Owner of FMG Dr Andrew Forrest, signed the instrument, witnessed and co-signed by Prime Minister, James Marape and FMG CEO Julie Suttleworth.

 

Prime Minister Marape called the signing "historic" as it paves the way for FMG through its subsidiaries Fortescue Future Industry (FFI) and PNGFFI to explore and later look into developing renewable energy sources that will cover hydro, solar, wind and geothermal power.

 

He said this was the "most appropriate and relevant way to go" as the world moves toward green energy and tries to cut down its carbon footprint.

 

Marape added that his Pangu-led Government was keen on generating clean energy utilizing the country's natural resources - solar, wind, gas and geothermal hot springs.

 

FMG Owner Dr Forrest is the second richest man in Australia with a net worth of A$27.25billion, according to the Australian Financial Review.

 

PM Marape thanked Dr Forrest for his "personal choice” to invest in PNG in this frontier sector, calling him "a friend of PNG closer to home".

 

Through the virtual video link, Dr. Forrest explained his personal affinity to PNG in that he had lost an uncle in PNG during World War II, one other reason he has chosen to invest in PNG.

 

Already the investor is eyeing sites in Gulf and West New Britian provinces to investigate and study hydropower and geothermal potentials respectively as it continues to explore other sites in PNG, especially geothermal, hydro and solar.

 

The partnership is frontier-breaking and adds value to the work the Marape Government is doing nationally in managing its natural resources better, and in the region and globally on reducing the impact of climate change through more environmentally-conscious projects.

 

With the recent set up of the National Energy Authority, such projects would be better streamlined and properly operated through the Ministry of Energy, the Prime Minister said.

 

He then invited Dr. Forrest to join him to advocate on green energy at the United Nations conference on climate change, COP26, later in the year.

 

The signing now allows the company to begin work on acquiring relevant licences to progress work.

 

Minister Duma said a timeframe of no more than three years was being looked at before the first project could be operated.

 

The Ministry of State Enterprises and its body, Kumul Consolidated Holdings spearheaded the signing, witnessed by government representatives from relevant departments and state bodies.

Author: 
Freddy Mou