(Reuters) - Fortescue Metals Group (OTC:FSUGY) Ltd's green energy unit said on Thursday it bought a 60% stake in Dutch-based renewable firm High yield Energy Technologies (HyET) Group in a bid to cut costs and boost green energy production.
Fortescue Future Industries (FFI) is part of Fortescue Metals' plan to become the world's first major supplier of green iron ore, and aims to supply 15 million tonnes of green hydrogen globally by 2030.
Fortescue Metals, the world's No.4 iron ore producer, is pursuing some of the most ambitious green plans in the industry with its efforts to diversify into renewable energy and green hydrogen through FFI.
"HyET Hydrogen's technology will support FFI in reducing costs in other areas of the green hydrogen supply chain," said Julie Shuttleworth, chief executive officer of FFI.
FFI, which plans to spend between $400 million and $600 million in the year to June 2022 on developing green transport and decarbonisation technologies, expects to cut down costs at its Powerfoil factory in Australia from the acquisition.
As part of the deal, FFI will provide a majority share of financing for the expansion of HyET Solar's Dutch Solar photovoltaics factory. Financial terms of the stake acquisition were not disclosed.