JCB, Iron Ore Major In Major Green Hydrogen Deal for the UK Market

A day ahead of the COP26 summit starting in Glasgow, Scotland, two billionaires who made their money in the old economy of iron ore mining and construction equipment have joined to announce a massive green hydrogen initiative in the UK. Involving Andrew Forrest  of Fortescue Future Industries (FFI) which is a major Iron Ore exporter from Australia, and the Bamford family that owns the iconic JCB brand and construction firm, the two have announced a major plan for green hydrogen production in the UK.

The “multi-billion pound” deal between JCB subsidiary Ryze Hydrogen and expects the latter to buy 10 per cent of the renewable hydrogen that Forrest’s FFI plans to produce.

The Jo Bamford (son of the founder of JCB) run JCB will also manage the  green hydrogen distribution sales in the UK.

While the initial focus is on heavy transport’s transition to green hydrogen, including JCB’s construction equipment, it also has a waiting client in the Bamford owned Wrightbus, the UK’s biggest bus manufacturing company which has also produced the world’s first hydrogen powered double decker bus.

FFI targets to produce 15 million tonnes of green hydrogen a year by 2030, accelerating to 50 million tonnes per year in the decade thereafter. That production will be powered by almost 300 GW of renewable energy projects, covering the whole gamut from solar, wind to geothermal and Hydro.

For JCB, as the world’s largest construction equipment manufacturer, whose excavators have sometimes been seen as the harbinger of destruction of pristine habitats, the change couldn’t have come sooner. It’s an opportunity to stay at the forefront of change in the sector it leads, and show the way to the others before its is called out for not doing enough. It has already worked on developing Hydrogen powered machines, and is very hopeful it will manage the transition for its customers if the green hydrogen prices drop to a level considered low enough.