- Fortescue, an Australian iron ore mining company, has committed to investing around $750 million over the next three years in green energy and steel projects.
- This investment will support two green energy projects and one green steel project.
Fortescue, an Australian iron ore mining company, has announced a major investment in clean energy and green steel. The company plans to spend around $750 million over the next three years on two renewable energy projects and one green steel project. This move is part of Fortescue’s goal to become a leading producer of clean energy.
The investments include:
- A hydrogen production hub in Phoenix, Arizona, USA.
- A 50 megawatt green hydrogen project in Gladstone, Queensland, Australia.
- A commercial plant for producing green iron at Christmas Creek, Western Australia.
Most of the investment, about $550 million, will go towards building a facility in Phoenix for making and storing liquid green hydrogen. Fortescue aims to start producing this green hydrogen by 2026.
Fortescue, currently the fourth-largest iron ore producer globally, is expanding into hydrogen production from renewable sources through its Fortescue Energy unit. The company is also accelerating its clean energy projects in Brazil, Kenya, and Norway.
Sustainability direction right for business
David Coates, an analyst from BellPotter in Sydney, sees this development positively, noting that it provides more clarity on Fortescue’s plans, though the exact returns on investment are still unclear. He believes that the capital investment is relatively small, which might ease some market concerns.
In addition to these projects, Fortescue is increasing its presence in the U.S. market. Recently, the company announced plans to establish an advanced manufacturing center in Michigan and a New York office, Fortescue Capital, to attract more investment for its green energy initiatives.
Fortescue has also changed its funding approach for green energy. Instead of dedicating 10% of its net profit to its energy unit, it will now fund projects based on their merits, with additional capital coming from external investors. The company expects to own 25% to 50% stakes in projects involving outside investors.
