Twiggy Forrest’s Fortescue Metals has followed through on support for new industries based on renewable hydrogen by earmarking up to $400 million dollars for investment in the sector.
The iron ore miner told investors as part of its half year profit statement that 10 per cent of profits swelled by strong demand from China would be ploughed back into establishing the hydrogen export economy,
Last month @AuManufacturing reported Fortescue founder Andrew Forrest’s conversion to the dangers of climate change and the potential of a green hydrogen economy.
In the company’s announcement of an underlying EBITDA of $6.6 billion for the six months to 31 December, CEO Elizabeth Gains put dollar muscle behind Forrest’s rhetoric.
She announced the establishment of Fortescue Future Industries to pursue renewable energy and green hydrogen projects in Australia and globally.
She said: “Leveraging Fortescue’s successful track record of identifying, assessing and developing large-scale resource projects and infrastructure opportunities, the company will bring its demonstrated capability of adopting innovation and technology to ensure future green energy projects will position Fortescue at the forefront of this emerging industry.”
Fortescue has a dividend policy of returning 80 per cent of profits to shareholders.
The new company direction means that 10 per cent – half the remainder – is invested in green technology solutions.
“The company is investing iin a range of practical initiatives to decarbonise our operations which will underpin the achievement of our industry leading emissions target of net zero operational emissions by 2040.”
Picture: Fortescue Metals
Subscribe to our free @AuManufacturing newsletter here.