The UK is “just sleep walking” when it comes to developing green hydrogen, according to Australian mining magnate Andrew Forrest, one of the west’s biggest hydrogen investors.
The warning comes at a time when fears are growing about the inadequacy of the UK and continental Europe’s response to the huge clean energy subsidies in the US, where the Inflation Reduction Act (IRA) is channelling hundreds of billions of dollars towards power projects including green hydrogen.
“Instead of whingeing about the IRA, which I’ve heard politicians here do — get on and match it,” said Forrest in an interview at the Financial Times Hydrogen Summit. “If we are serious about economic growth for decades to come, this is your shot,” he added, referring to the UK.
The billionaire, who made his fortune mining iron ore, said the US was the most attractive place in the world to invest in green hydrogen projects. Under the IRA, green hydrogen produced there is subsidised at $3 per kilogramme.
The UK is targeting 10 gigawatts of hydrogen production by 2030, and the government says by 2050 the UK could source 20-35 per cent of its energy supply from hydrogen.
However, the government does not currently have any all-encompassing policy for how to reach those targets.
The government is considering a “hydrogen levy” on energy bills but has not yet reached a decision, amid concern about costs for households.
Forrest is executive chair and 40 per cent owner of Fortescue, which controls both Fortescue Future Industries, its green investment division, as well as Fortescue Metals Group, the world’s fourth-largest iron ore producer.
FFI expects to reach a final investment decision by the end of this year on at least one major green hydrogen or ammonia project in the US, and four in other jurisdictions.
“We will invest billions of dollars, eventually tens of billions, in the United States,” said Forrest. While FFI was initially more focused on Africa, Australia and Europe, the IRA has shifted that. “You have to go where the returns are higher,” he said.
In the UK, FFI owns the battery and technology arm of the Williams Formula One racing team, which is planning to produce green hydrogen fuel cell batteries and is developing an electric train.
FFI also has an agreement to supply green hydrogen to construction group JCB and to Ryze Hydrogen, which develops green hydrogen buses and trucks. It has also been examining the potential to produce green hydrogen in Scotland.
