JCB signs multi-billion pound green hydrogen deal

Construction equipment maker JCB has signed a deal worth billions of pounds to buy green hydrogen with an Australian company.

The deal for green hydrogen was signed with Australian firm Fortescue Future Industries (FFI) in a partnership the company called “the first of its kind”.

It will see Staffordshire-based JCB and another firm, Ryze, purchase 10% of FFI’s global green hydrogen production.

FFI’s green hydrogen production is anticipated to grow to 15 million tonnes of GH2 per year by 2030, accelerating to 50 million tonnes per year in the next decade thereafter.

Under the partnership, FFI will lead the green hydrogen production and logistics to the UK market, and JCB and Ryze will manage green hydrogen distribution and development of customer demand in the UK.

FFI chairman Dr Andrew Forrest said: “This landmark, first of its kind partnership will help the UK to achieve Net Zero, particularly in the hard to electrify sectors.

“Our agreement signals the first major shift in the global commercial landscape from fossil fuels towards the real, practical, implementable solution that is green hydrogen.”

JCB chairman Lord Bamford added: “This is an important step towards getting green hydrogen to the customer. It’s fine having an engine powered by green hydrogen, but no good if customers can’t get green hydrogen to fuel their machines. This is a major advance on the road towards making green hydrogen a viable solution.”

FFI chief executive Julie Shuttleworth said: “This deal reinforces the inexorable march of green hydrogen as the fuel of the future.

“Green hydrogen is critical for the planet and good for business, a powerful fuel and ingredient in the manufacturing of a large range of industrial, difficult-to-decarbonise products. It will be fundamental in enabling the decarbonization of heavy industry globally.”