On Thursday, Fortescue Metals Group Ltd ‘s green energy unit said, it had purchased a 60% stake in High yield Energy Technologies in an effort to cut costs and increase its 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.

“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 aims to spend around $400 million to $600 million in the year to June 2022 to develop green transport and decarbonisation technologies, expects synergies from the acquisition at its Powerfoil factory in Australia.

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 have not been disclosed.

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