Fortescue Energy CEO Mark Hutchinson highlighted the challenges of replacing fossil fuels with green H₂, emphasizing the need to make it price-competitive as buyers resist paying "green premiums." Green H₂, produced using renewable electricity, is costly due to expensive electrolyzers, and anticipated government subsidies have not materialized.

Demand for green H₂ and ammonia has lagged, though Hutchinson expressed hope for growth as prices decline over the next few years. He stressed that the sector's success depends on economic viability rather than relying on environmental motivations alone.

Fortescue Energy, the green energy arm of Fortescue Metals, has scaled back its target of producing 15 metric MMt of green H₂ by 2030. Political challenges, such as a shift in U.S. energy policies under Donald Trump, have further complicated progress.

Despite demand concerns, the company is focusing on "green iron," which uses H₂ to produce low-carbon steel, addressing the steel industry's significant carbon emissions. Final investment decisions for green H₂ projects in Norway and Brazil are delayed, pending more investor participation.

Source: Reuters

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