Fortescue Metals Group Limited (ASX: FMG) has achieved its 30 June 2021 renewable energy and decarbonisation targets.
Fortescue delivers on renewable energy targets
Fortescue Future Industries (FFI) is the 100% green initiative arm of the business. It was announced today that it has reached the 30 June targets for the initial decarbonisation projects, which were originally set on 15 March 2021.
Management said that FFI’s specialist teams have made “ground breaking” progress in multiple target areas.
Trains
FFI said that it has achieved successful combustion of ammonia in locomotive/train fuel with a pathway to achieve completely renewable green fuel.
Ships
Another target area FFI outlined was the completion of design and construction of a combustion testing device for large ship engines, with pilot tests underway and a pathway to achieve renewable green shipping fuel.
FFI finalised design of a “next generation” ore carrier ship that will consume renewable green ammonia and has been given design approval.
Trucks
The company said that it has tested battery cells to be used on Fortescue haul trucks. The design and construction of a hydrogen powered haul truck has been completed and systems tests are underway.
Other
Fortescue also said that it has designed and constructed a hydrogen powered drill rig and it is under systems testing.
Other target areas that the company achieved were successful production of high purity (over 97%) green iron from Fortescue ore and successful initial trials to use waste from the green iron process to make green cement.
Fortescue management comments
FFI CEO Julie Shuttleworth AM said: “Fortescue is delighted by these results… We set out to test the hypothesis that there was sufficient 100 per cent renewable green energy, hydrogen, ammonia and industrial manufacturing potential for products such as green cement, green fertilizer, green iron and steel, to fully satisfy the world’s needs.”
“FFI’s Green Team has established a major facility at Hazelmere in Perth, where we have been managing and trialling technology… Our dedicated specialist teams have worked relentlessly to bring our own heavy industry decarbonisation into reality.”
Fortescue CEO Elizabeth Gaines said: “We are leading the heavy industry battle against global warming, transitioning from being a major fossil fuel importer to a significant green and renewable energy and product exporter.. All of us at Fortescue are committed to its decarbonisation.”
“Our great progress to date and our ongoing projects underpin Fortescue’s plan to become a major renewable energy and industry product exporter. As part of this plan, we are aiming to meet or beat our internal global industry leading target to achieve carbon neutrality by 2030.”
Final thoughts on Fortescue and the share price
I personally find Fortescue’s ambition and commitment to green energy inspiring. It is a company with iron ore operations that have a high environment impact, it is great to see its green innovation plans coming to fruition.
If Fortescue is successful with even just one of these ventures, such as green cement or green steel, it could become a large segment of its business and create potential revenue as well as a lower carbon footprint is a win-win in my opinion.
However, iron ore will probably always be the core of its business and continue to generate a cyclical share price. I do own a small parcel of Fortescue shares and it is on my watchlist as I am eagerly waiting for the share price to hit a lower point in the cycle.
