This week, Fortescue (ASX:FMG) produced its own hydrogen for the first time. What does this mean?

What's the lowdown of the company's latest milestone achievement?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Fortescue Metals Group Limited (ASX: FMG) share price has continued it accent in recent times, following positive investor sentiment.

This week, the mining outfit delivered news regarding a breakthrough achievement for its green offshoot, Fortescue Future Industries (FFI).

At Thursday's market close, the iron ore producer's shares dipped by 1.44% to $19.16 apiece.

male worker in hi-vis checking the balance of the hydrogen tanks

Image source: Getty Images

Fortescue Future Industries make progress

According to its media release, Fortescue Future Industries surpassed a milestone target in its quest into the green hydrogen industry.

The global green energy and product company announced it has designed and built its own electrolyser to produce renewable hydrogen.

A small team from Fortescue Future Industries' manufacturing arm developed the innovative electrolyser in their Western Australia facility. This is the first time the company has been able to create industrial grade hydrogen.

Fortescue Future Industries is aiming to produce 15 million tonnes of green hydrogen annually by 2030. 

Currently, the company is in the process of installing solar panels at its Dawson Road facility. Once complete, the electrolyser will be able to produce green hydrogen from solar electricity in 2022.

A pressurized alkaline system had been used to generate the hydrogen. The hydrogen gas management system is now fully operational and will be used to test all of the company's prototypes and concepts.

Fortescue Future Industries CEO, Julie Shuttleworth commented:

This is another outstanding achievement from our FFI in-house scientists and engineers – who are continuing to break new ground. The FFI team has designed and operated our own electrolyser system which will be key to developing FFI's green hydrogen production into the future.

Fortescue Future Industries chair, Dr Andrew Forrest added:

This electrolyser was internally designed, built and commissioned by a small, dedicated team of experts – an impressive achievement that is representative of the hard work that is happening across the whole of FFI.

The team spent thousands of hours on this project, facing setbacks along the way, but they pushed forward and managed to produce hydrogen before their stretch target date.

Fortescue share price snapshot

Up until the end of July, Fortescue shareholders were enjoying strong gains, hitting an all-time high of $26.58 apiece. That all came crashing down in the following months, with its shares touching a low of $13.90 in early October.

Since then, its shares have rebounded to around the half-way levels achieved in the first half of 2021.

On valuation metrics, Fortescue commands a market capitalisation of roughly $58.99 billion and has approximately 3.08 billion shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

The commodity growth engine may not be firing on all cylinders.

Read more »