Australian green energy company, Fortescue Future Industries (FFI), has signed a framework agreement with the Republic of Djibouti to conduct studies with a view to develop green hydrogen production in the East African country.
This marks a major step towards the North-east African country’s first ever production of green hydrogen, positioning Djibouti as a future leader in renewable energy production.
“This project has the potential for significant socio-economic impact, in terms of job creation,” Djibouti’s Energy and Natural Resources minister Yonis Ali Guedi said.
With the global countries transitioning to clean energy sources, this deal positions the country within good stead moving forward.
“Djibouti does not want to miss this historic moment when green hydrogen becomes the fuel for energy transition,” Ali Guedi added.
The deal provides FFI access and rights to study the possibilities of renewable energy resources in Djibouti which include solar, wind and geothermal sites, as well as subsurface gas storage areas and industrial areas.
Depending on the outcome of FFI’s studies, the parties may then negotiate the terms on an Investment Agreement to develop and construct green hydrogen production facilities on that land.
“This partnership with the Government of the Republic of Djibouti is a great step towards lowering emissions and driving green energy projects forward,” FFI Chief Executive Officer, Julie Shuttleworth said, adding that “Djibouti’s solar, wind and geothermal sites as well as its access to port, makes it an attractive location for the production of green hydrogen.
“FFI is committed to delivering social, environmental and economic benefits, and we look forward to working with … Djibouti in this new venture,” Shuttleworth added.