Yes, but the problem is the capital required to achieve that.
If it costs $1b and your cost of capital is 10%, well that's around a $100m expense per year on the hydrogen side of the ledger, without generating any hydrogen at all ... which will cost more.
It isn't simply a case that its cheaper to produce hydrogen than it is to buy diesel, it's also the capital required to build the hydrogen infrastructure.
It is very unfortunate that FMG hasn't provided any modelling of the economics for FFI, if they had done so, we (and the market) would be in a better position to know if this is actually a profitable enterprise or just an expensive feel good exercise.
Currently analysts are of the view that FFI will not generate a positive net present value, meaning the cost of capital and other expenses is expected to outweigh the benefits. It's not analysts fault, its FMG's for not providing the market with any modelling.
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