The Australian firm Fortescue Future Industries will invest about 8,000 million dollars to produce green hydrogen in Argentina, said a senior executive of the firm and the minister of Production of that country.

“Argentina is in the five most important projects of the company. It is called Pampas. It will be located in (the Patagonian province of) Río Negro. We signed a MOU (memorandum of understanding) a few months ago and today we are already talking about a investment close to 8,000 million dollars, “said Agustín Pichot, representative of the firm for Latin America.

The announcement was made during a press conference with the Chancellor, Santiago Cafiero, and the Minister of Production, Matías Kulfas, in Glasgow, Scotland, in the framework of the COP26 climate summit.

“This investment announcement is the most important of the 21st century in Argentina, we take it with great responsibility and pride. It is an investment that founded a new industry, the green hydrogen industry, which is growing internationally. Hydrogen is a source of energy that is already beginning to be used in mobility, “said Kulfas.

Forrest, whose Fortescue Metals Group Ltd Aiming to become carbon neutral by 2030, it is a major sponsor of green hydrogen, a carbon-free fuel produced by electrolysis that uses renewable energy to split water into hydrogen and oxygen.

While it is currently more expensive than rival fuels, its backers tout it as a clean replacement for fossil fuels in industries that would otherwise be difficult to decarbonize. The International Renewable Energy Agency has forecast rapid growth in the coming years.

The project in Argentina would help create more than 15,000 jobs directly and indirectly, according to the government.

Fortescue Future Industries, the mining company’s green energy unit, did not immediately respond to a request for comment.

Kulfas said that “this is a project that in addition to all the benefits that we mentioned for the planet (…) is also part of the solution to exchange problems. Argentina has a banking problem because it lacks investments and exports, this project provides both”.

The Australian company will carry out analyzes on local resources and wind availability, which it uses as the main source of energy for energy production. If that goes well, public consultations and other construction work would begin.

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