Fortescue Future Industries (FFI) and the North Kalimantan Provincial Government of the Republic of Indonesia have signed a Cooperation Agreement to explore and study the potential for renewable energy and green hydrogen projects. This Agreement is a step towards fulfilling the Memorandum of Understanding (MoU) between FFI and the Provincial Government, signed on 12 July 2021.
FFI proposes to produce green hydrogen and green ammonia in North Kalimantan for domestic use and export markets. The potential projects to be further studied under the Cooperation Agreement will utilise renewable power and will be built in North Kalimantan Province. The proposed projects will provide significant economic benefits to the people of North Kalimantan and are planned to be to the highest standards of social and environmental sustainability. FFI will agree to have a specific focus on increasing local labour expertise and utilisation of local goods and services.
FFI Chief Executive Officer, Julie Shuttleworth AM said, "FFI is supportive of Indonesia's efforts to decarbonise its economy."
"We look forward to working together with the Provincial Government and local communities to help place North Kalimantan at the forefront of developing renewable resources that will power green hydrogen and green ammonia production," Ms Shuttleworth said.
Building on FFI's preliminary study conducted earlier this year, in 2022 FFI will undertake further studies with a view to potentially develop an industrial processing facility that is capable of producing approximately 650,000 tonnes of green hydrogen for conversion to 3.7 million tonnes of green ammonia per annum. The potential development is subject to the outcome of the further studies and Fortescue Board approval.
North Kalimantan Provincial Governor, Drs. H. Zainal A. Paliwang, SH., M.Hum., said "I express my gratitude and high appreciation, because as a follow-up to the signing of the collective agreement carried out earlier this year, today the signing of the Cooperation Agreement on the implementation of the development of environmentally friendly energy and industry in North Kalimantan Province can be done."
"Hopefully this Cooperation Agreement can be beneficial for both parties – for the North Kalimantan provincial government as well as for PT. Indonesia Fortescue Infrastructure."
North Kalimantan Provincial Secretary, H. Suriansyah, said "Development needs to carefully consider the environmental and social aspects. We must ensure that North Kalimantan's green development plan contribute to permanent solutions – which also address the adverse risk of climate change."
"I hope together with FFI we can commit to maximizing our role set in the Agreement to create a healthy and greener North Kalimantan for our children and grandchildren."
Australia's Ambassador to Indonesia, Penny Williams, said "Australia and Indonesia have agreed to work together to combat climate change, including by encouraging investment in green energy projects. FFI's plans to harness the power of green energy in North Kalimantan demonstrate the growing interest by Australian companies in investing in Indonesia."
FFI's operations are in line with the vision and mission of President Joko Widodo and Governor Zainal in providing jobs for local people and generating opportunities for local businesses. FFI supports the President's leadership in opening pathways for green investment and strategic programs to decarbonise Indonesia's economy through zero-emissions green hydrogen fuel. FFI welcomes the Government's actions in improving the investment climate and has committed itself to help boost domestic trade in a sustainable manner.
"We are proud that our Cooperation Agreement places human rights, environment and then economics, in that order, in every discussion we have with every government in the world – including Indonesia," Ms Shuttleworth said.
Any FFI project that is approved will be conducted in full compliance with the provincial and central government laws and adhere to strict international best practice standards relating to the conservation and protection of the environment, biodiversity and cultural heritage, occupational health and safety, anti-bribery and corruption, anti-money laundering and eradicating modern slavery.
