Published: November 21, 2023 |

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Australia’s Fortescue approved on Tuesday an estimated total investment of about $750 million over the next three years for two green energy projects and one green steel project as the iron ore miner seeks to become a top-tier clean energy producer.

Fortescue approved investments in the U.S. hydrogen hub in Phoenix, Arizona; the Gladstone 50 megawatt green hydrogen project in Queensland, Australia; and the Christmas Creek green iron trial commercial plant in Western Australia.

About $550 million will be used for developing an electrolyzer and liquefaction facility in Phoenix, where first production of liquid green hydrogen is targeted for 2026.

The world’s fourth-largest iron ore maker, which is expanding into production of hydrogen from renewable resources with its Fortescue Energy unit, said it had also decided to fast-track projects in Brazil, Kenya, and Norway.

“It’s a positive because it turns no information into some information. It’s still difficult to quantify what investment returns are going to look like… I think some of the market’s concerns will be allayed because the capital investment required is pretty minimal in the scheme of things,” said analyst David Coates of BellPotter in Sydney.

Fortescue is stepping up its push into the U.S. markets.

In the past few days, it has unveiled plans to set up an advanced manufacturing center in Michigan and an office in New York, Fortescue Capital, to lure more investment to its green energy companies.

Under a plan to ramp up its green energy business, Fortescue said in August it would stop allocating 10 percent of its net profit to that unit. Instead, projects and investments would compete for capital allocation, with additional flows from outside investors.

Fortescue expects to hold stakes of 25 percent to 50 percent in projects with outside investors.

Source: Reuters

Fortescue Metals Group is a global leader in the iron ore industry, recognized for its culture, innovation and industry-leading development of world class infrastructure and mining assets in the Pilbara, Western Australia. Since it was founded in 2003, Fortescue has discovered and developed major iron ore deposits and constructed some of the most significant mines in the world. The Company’s operations span four mine sites in the Pilbara. The Chichester Hub, which includes the Cloudbreak and Christmas Creek mines, is located in the Chichester Ranges and the Solomon Hub, in the Hamersley Ranges, includes the Firetail and Kings Valley mines. Fortescue owns and operates an integrated supply chain including its five berth Herb Elliott Port in Port Hedland and the fastest, heavy haul railway in the world.

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