Fortescue Strengthens Target for Carbon Neutrality by 2030
Fortescue Metals Group Ltd Chairman Dr Andrew Forrest announced Fortescue’s target to achieve carbon neutrality by 2030, ten years earlier than the previous
Fortescue Metals Group Ltd Chairman Dr Andrew Forrest announced Fortescue’s target to achieve carbon neutrality by 2030, ten years earlier than the previous target. Fortescue Future Industries, a wholly owned subsidiary of Fortescue, will be a key enabler of this target through the development of green electricity, green hydrogen and green ammonia projects in Australia. Dr Forrest said “We have joined the global battle to defeat climate change. We are trialling and demonstrating green hydrogen technologies in global-scale commercial environments, while also rapidly evolving into a green hydrogen and electricity producer of similar scale. Our commitment to demonstrate green hydrogen’s economic value in world-scale operations, and become a major energy exporter, while implementing the considerable facilities to support both, means that Fortescue has emerged not simply as a thought-leader and investor, but uniquely as an executor of major green hydrogen projects. Our aim is to provide the two missing links in the climate change battle, to create both the demand and the supply of green hydrogen. Due to its high energy performance and environmental neutrality, green hydrogen and direct green electricity has the potential to eliminate fossil fuels from supply chains. Once established, these advances will also substantially reduce Fortescue’s operating costs. Fortescue’s strong focus on green energy and our carbon neutrality targets will sit alongside our continuing excellence in, and commitment to, our iron ore business. While our green energy and industry initiatives may one day significantly outscale our iron ore business due to the global demand for renewable energy, our commitment to iron ore and resources globally remains indefeasible.”
Fortescue is seeking to move from being a major consumer of fossil fuel with a current trajectory of more than 1 billion litres a year of diesel being used across the operations if no remedial action is taken - to a major clean and renewable energy exporter. FFI is advancing projects across Australia including Tasmania, to build large-scale renewable energy and green hydrogen production capacity. This will expedite the substitution of green hydrogen and green ammonia for carbon-based fuels. These projects will, with the support of Australia’s governments, contribute to a significant reduction in national carbon emissions. Through FFI and its highly committed Operations team, Fortescue is undertaking to deliver several key projects by the stretch target of 30 June 2021. This will underpin its pathway to decarbonisation. These projects include
Developing a ship design powered by green ammonia and trialling that design in new ammonia engine technology, at scale
Testing large battery technology in our haul trucks
Trialling hydrogen fuel cell power for our drill rigs
Trialling technology on our locomotives to run on green ammonia
Conducting trials to use renewable energy in the Pilbara to convert iron ore to green iron at low temperatures, without coal.
In June 2020, Fortescue announced an industry-leading target to achieve net zero operational emissions by 2040. This included a 26 percent reduction in Scope 1 and 2 emissions from existing operations by 2030 relative to 2020 levels.