Global green energy powerhouse Fortescue Future Industries (FFI) today announced that it will collaborate on exploring potential green hydrogen opportunities across South Africa under a non-binding term sheet with African Rainbow Energy, a South African company with an impressive track record in the development of and investment in local renewable energy projects.
The collaboration comes at a crucial time, with the South African green hydrogen market attracting international investors.
African Rainbow Energy’s development credentials, combined with their local market knowledge and financial capabilities provide excellent alignment with Fortescue’s knowledge and investment in the global green hydrogen sector.
Both parties will use their relevant expertise to identify domestic market opportunities to support the development of green hydrogen projects at strategic locations across South Africa. Upon identifying an opportune business case, African Rainbow Energy and FFI will negotiate the terms of a binding Joint Development Agreement.
Fortescue Future Industries CEO Mark Hutchinson said, “This partnership would leverage African Rainbow Energy’s knowledge of the extractives industry, to attract customers who recognise that green hydrogen and green energy will compete on both price and reliability of supply with fossil fuels and will help the planet and energy markets transition towards a greener future.”
“African Rainbow Energy’s commitment to renewable energy projects is already well established through their investments in South Africa’s renewable energy sector. Green hydrogen is another smart commercial commitment but also one which will empower local communities through jobs and sustainable, long-term business, which will see returns go back into the local community.”
African Rainbow Energy CEO, Brian Dames said, “One of the main objectives of African Rainbow Energy, is to provide affordable energy solutions in South Africa and on the African continent through the utilisation of modern and renewable energy technologies. Fortescue, shares not only our business objectives but a shared faith that we can do better for our people and the planet.”
“Future potential projects with Fortescue would provide employment opportunities providing an opportunity for continuation of the company’s commitment to work with partners who share common values and a climate conscience.”
Both parties aim to develop projects within the framework of South Africa’s Just Energy Transition, with a goal of providing new economic opportunity, education, and skills trainings to ensure the benefits of such projects are distributed among local communities.