Fortescue Metals Group and ATCO Australia have signed an agreement to explore the deployment of hydrogen vehicle fuelling infrastructure in Western Australia.

The two parties will collaborate to build and operate a combined hydrogen production and refuelling facility at ATCO's existing facility in Jandakot in the Perth metropolitan area, with the possibility of wider deployment across the State.

The initial refuelling facility will provide Fortescue, ATCO and approved third parties with the opportunity to refuel vehicles capable of utilising hydrogen as the primary fuel source, including a fleet of Toyota Mirai fuel cell electric vehicles, which have been made available by Toyota Motor Corporation Australia.

"As the world moves towards a lower carbon future, hydrogen has the potential to play a key role in the future energy mix and we want to ensure we remain at the forefront of Australia's renewable hydrogen industry," said Fortescue CEO, Elisabeth Gaines.

"Identifying and establishing partnerships is critical to unlocking the future potential of hydrogen and we look forward to working with ATCO to capitalise on the economic opportunities associated with hydrogen and support the development of a competitive hydrogen industry." 

ATCO managing director in Australia, Pat Creaghan added ATCO is committed to expediting the global transition to a net-zero emissions balance in the future and sees a significant opportunity for hydrogen to play a role.

"ATCO's Clean Energy Innovation Hub (Hub) has been generating and testing the use of renewable hydrogen for more than six months in gas blending and power applications," said Creaghan.

"The Hub provides a fantastic base from which to partner with Fortescue to contribute to Western Australia's burgeoning renewable hydrogen industry.

"We look forward to working with Fortescue capitalise on Western Australia's natural advantages for the benefit of the environment, the economy and the community."

ATCO and Fortescue have sought funding through the State Government's Renewable Hydrogen Fund to support development of the infrastructure and are awaiting the submission outcome.