JCB and Ryze partner with Fortescue on UK green hydrogen supply deal

Construction company JCB has partnered with Ryze Hydrogen on a multibillion-pound deal with Australia's Fortescue Future Industries to supply the UK market with renewable hydrogen.

Ryze and JCB will purchase 10% of FFI's global renewable hydrogen production, under a memorandum of understanding signed Oct. 31.

FFI's expects its renewable hydrogen production to reach 15 million mt/year by 2030, rising to 50 million mt/year by 2040, it said in a statement.

Under the agreement, Ryze and JCB will manage hydrogen distribution and customer demand development in the UK, the companies said in the statement.

Ryze founder and JCB heir Jo Bamford said: "We are walking the walk on green hydrogen and now we want the government to show its commitment to the sector by investing in buses, trains, trucks, ships, aircraft and the entire green hydrogen supply chain."

Ryze is building a network of renewable hydrogen production plants, and Wrightbus, also owned by Bamford, built the world's first hydrogen double decker bus.

"This agreement demonstrates that green hydrogen does not need to be 'transitioned' via fossil fuel hydrogen," Bamford said in the statement. "Production of it can commence at once, to meet the needs of all mobility."

The companies are also exploring offtake agreements for the wider European market, they said.

Calculated hydrogen production costs have risen sharply in recent weeks on the back of record-high gas and power prices in Europe. However, production costs are expected to fall dramatically by 2030, especially in locations with plentiful cheap renewable power generation.

S&P Global Platts assessed the cost of producing hydrogen via alkaline electrolysis in the UK (including capex) at GBP10.43/kg ($14.25/kg) Oct. 29. PEM electrolysis production was assessed at GBP12.43/kg, while blue hydrogen production by autothermal reforming was GBP3.73/kg (including capex, CCS and carbon).