Fortescue shifts focus to long-term export of green metals to China
Mining giant Fortescue expressed its intention to focus heavily on exporting green metals to China in the long term, where most of its customers are based.
The company stated that this initiative could potentially eliminate over 200 million tonnes (Mt) of Scope 3 emissions annually, which are indirectly generated as a result of its operations.
Fortescue also mentioned its pursuit of jointly developing a fully-integrated Australia-China green metal supply chain, following a visit by Chinese Premier Li Qiang to Fortescue’s green technology and test facility in Perth last June.
At present, China accounts for more than 50 percent of global steel production.
“We are unwaveringly committed to the green energy transition and are making significant progress towards our objectives, while also adhering to the financial discipline that has been a key factor in Fortescue’s success over the past two decades,” said Mark Hutchinson, Fortescue Energy CEO.
This announcement coincides with Fortescue reporting an 18 percent increase in net profit to $5.66 billion (US$3.8 billion) and an 8 percent rise in revenue to $18.22 billion in fiscal 2024 compared to the previous fiscal year.
Iron ore shipments reached 191.6 Mt during this period, the second-highest output contributing to the company’s third-highest earnings in its history.
Throughout the fiscal year, Fortescue made final investment decisions for its Arizona Hydrogen and Gladstone PEM50 projects, while advancing the Holmaneset and Pecém green energy projects to the feasibility phase.
Hutchinson noted, “We recently inaugurated our Gladstone Electrolyser Centre in Queensland and commenced the sale of our electrolyser systems. These technologies, along with our other Fortescue Zero products and solutions, play a crucial role in our endeavors. We are not only using them to decarbonize our mining operations by 2030 but are also selling them to customers to help them reduce emissions.”
The company also completed the construction of its 100MW solar farm at North Star Junction near Iron Bridge, Western Australia.
Additionally, construction began on a high voltage transmission line linking the Solomon and Eliwana mine sites to complement the existing Pilbara Energy Connect transmission infrastructure connecting Solomon and Iron Bridge.
Fortescue’s goal is to interconnect all its mines and renewable generation assets into a unified power grid by 2028 and achieve 100 percent renewable energy by 2030.
Hutchinson emphasized, “We are developing an ambitious portfolio that encompasses complementary capabilities across the entire green energy value chain, from green electron and molecule production to battery power systems, green technology development, and green financing through Fortescue Capital. This strategic approach allows us to optimize efficiencies, foster innovation, and gain a competitive advantage, while also being agile and adaptable to market shifts and new opportunities.”
