Sourcing Renewables - January 17, 2022
German Chemicals Maker to Source Australian Green Hydrogen
Covestro, a German manufacturer of high-tech polymer materials, will soon be entering a long-term agreement to receive green hydrogen and its derivatives to support the creation of its products.
The chemicals company completed Jan. 17 a Memorandum of Understanding with Australian green energy company Fortescue Future Industries (FFI) and plans to formalize the agreement at a later date. Under the deal, FFI will provide Covestro with the equivalent of up to 100,000 tons of green hydrogen per year. Covestro expects to reduce its manufacturing greenhouse gas emissions by up to 900,000 tons of CO2 per year by swapping out its grey hydrogen for FFI’s supply.
The green hydrogen will either be supplied to Asia, North America, or Europe manufacturing locations by 2024.
“Our collaboration with FFI underlines our ambition to pioneer the transition towards a circular economy and climate-neutral production,” Covestro CEO Dr. Markus Steilemann said in a statement. “Green hydrogen and its derivatives play a key role for the chemical industry, both as an alternative feedstock and a source of clean energy. The transition towards green hydrogen and its derivatives will be an important step forward in our efforts to offer more sustainable products that also reduce the carbon footprint of our customer industries.”
Covestro is currently pursuing a transition toward the total use of fossil fuel-free alternatives to raw materials and energy sources, while FFI plans to grow its green hydrogen production to 15 million tons per year by 2030 and 50 million tons per year by 2040.
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