Shell’s head of hydrogen, Paul Bogers, believes that it will be more difficult than anticipated for Fortescue’s chairman Andrew Twiggy Forrest to deliver on his ambitious agenda, The Australian reported.
“We like the enthusiasm for the venture…. But I think the reality is it’s still some time away before we can build these really large-scale ammonia-based import-export plays,” said Bogers.
“We’re not convinced that that is the best way of shipping hydrogen over longer distances, because of how much energy you have to put in creating it.”
Several of Fortescue’s major shareholders and analysts have already expressed concern about the costs involved to bring Twiggy’s green hydrogen dream to life. The iron ore miner is committing 10% of its net profit to its green energy business, Fortescue Future Industries.
An analysis by The Australian found that Fortescue will need around $195 billion to make good on Twiggy’s promises.