Focused on the supply of green hydrogen and its derivatives, including green ammonia, the agreement could see Asia, North America and Europe each benefit from the FFI deliveries, which could commence by 2024.
It is hoped that with the new energy supply, Covestro will reduce its greenhouse gas emissions by up to 900,000 tonnes of carbon dioxide annually, by replacing its currently used grey hydrogen with a green source.
Formalising the ambitions, the duo has already inked a Memorandum of Understanding (MoU) and soon intends to enter into a long-term agreement.
FFI and Covestro view the non-binding MoU as the first step towards a broader strategic partnership to accelerate the green energy transition, particularly in energy-intensive industry.
Dr. Andrew Forrest, Chairman of FFI, said, “This is a ground-breaking collaboration which reinforces the power of green hydrogen to accelerate the decarbonisation of some of the most energy-intensive industries around the world.
“FFI and Covestro share the belief that green hydrogen and green ammonia will play a crucial role in enabling companies to reach their climate targets and preventing runaway global warming.
“We look forward to working with Covestro to supply their green hydrogen needs, and collaborating with Germany to enable it to become the world leader in global decarbonisation, green hydrogen and ammonia.”
Dr Markus Steilemann, CEO of Covestro, added, “We are delighted that FFI shares our circular economy vision and is willing to take courageous steps to foster the urgently needed market ramp-up for green hydrogen.
“Our collaboration with FFI underlines our ambition to pioneer the transition towards a circular economy and climate-neutral production. 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.”
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