Australian iron ore miner Fortescue Metals Group has today updated its world leading heavy industry Decarbonisation strategy, aiming to eliminate fossil fuel use and achieve real zero terrestrial emissions (Scope 1 and 2) across its iron ore operations by 2030. The investment will eliminate Fortescue’s fossil fuel risk profile and enable it to supply its customers with a carbon free product.The strategy will see the Company lead the market in terms of its response to growing customer, community and investor expectations to reduce/eliminate carbon emissions. Fortescue expects to generate attractive economic returns from its investment arising from the operating cost savings due to the elimination of diesel, natural gas, and carbon offset purchases from its supply chain. Fortescue is well positioned to capitalise on first-mover advantage and the ability to commercialise decarbonisation technologies.Fortescue also announces that the Science Based Targets Initiative, will verify and audit its emissions reduction. This technical auditing initiative was instituted to ensure companies reach their Paris Agreement goal to limit global warming to 1.5 degrees.When fully implemented, Fortescue’s decarbonisation strategy and associated investment will provide significant environmental and economic returns by 2030, including:Avoidance of 3 million tonnes of CO2 equivalent emissions per annumNet operating cost savings of USD 818 million per annum from 2030, at prevailing market prices of diesel, gas and Australian Carbon Credit UnitsCumulative operating cost savings of USD 3 billion by 2030 and payback of capital by 2034, at prevailing market pricesElimination of Fortescue’s exposure to fossil fuels and associated fossil fuel price volatility which in turn, will de-risk the operating cost profileRemoval of the Company’s exposure to price risks associated with relying on carbon offsets as well as carbon tax regulatory riskEstablish a significant new green growth opportunity by producing a carbon free iron ore product and through the commercialisation of decarbonisation technologiesEnsuring future access to green driven capital marketsThe capital estimate is USD 6.2 billion, with the investment largely planned in FY24-28. This investment includes the deployment of an additional 2-3 GW of renewable energy generation and battery storage and the estimated incremental costs associated with a green mining fleet and locomotives. The capital expenditure to purchase the fleet will be aligned with the scheduled asset replacement life cycle and included in Fortescue’s sustaining capital expenditure. Studies are underway to optimise the localised wind and solar resources.