Andrew Forrest’s Fortescue has backpedaled on its ambitions in green hydrogen, reorganising the mining and energy company and focusing more on familiar downstream green energy opportunities.
The company, which has taken what some observers call a ‘scattergun’ approach to green hydrogen opportunities across the globe, has simplified its corporate structure, merging the mining and energy businesses into one.
The business retains CEOs at the head of the two businesses while sharing executives across the two businesses rather than having two separate structures, making 700 workers redundant in the process.
Fortescue’s official announcement was circumspect on what the reorganisation would mean for the company’s green ambitions.
Fortescue told investors: “Fortescue remains resolute in its commitment to be the world’s leading green technology, energy and metals company with a laser focus on achieving Real Zero by 2030.
“The Company has undergone a period of rapid growth and transition, and as part of bringing together Metals and Energy into One Fortescue, initiatives are being implemented to simplify its structure, remove duplication and deliver cost efficiencies.”
However the truth is while the company reportedly assessed 150 green hydrogen projects around the world it has only invested in two major projects.
These are a plant to make 30 tonnes of liquid hydrogen a day in Arizona and a $223 million 15,000sqm advanced manufacturing facility to make Proton Exchange Membrane (PEM) electrolyser stacks in Gladstone, Queensland.
Otherwise the company has progressed ambitions to cut its own emissions, investing in electric powered trains and hydrogen powered trucks, and $36 million in a business in the UK developing batteries and zero emission powertrains for motorsports, mining haul trucks, and other automotive applications.
In fact a search in @AuManufacturing shows Fortescue was very broadly focused and big on plans rather than investment announcements (here).
The bottom line is the company is deprioritising a number of green hydrogen projects and, according to media reports, ‘pivoting downstream along the conveyor belt to electricity projects’.
Solar PV and wind generation and battery storage is well known territory where any number of savvy investors are placing big bets.
However Fortescue chairman Forrest even defended his approach to date: “The ‘scattergun’ critics obviously haven’t gotten a lot of new industries off the ground.”
As such, the company is still considering a major green hydrogen project in Scandinavia and another in Brazil.
Further reading:
Fortescue opens Gladstone electrolyser facility
Fortescue’s hydrogen powered truck takes to the road
Fortescue opens new automotive development site at Kidlington
Picture: Fortescue’s Gladstone electrolyser plant