Fortescue energy still in the green hydrogen game

There is still a future in the Fortescue group for green energy with the company spruiking its hydrogen and electrolyser interests less than a week after the company appeared to backpeddle on the technologies.

A week ago Fortescue reorganised its businesses, retaining a CEO for its energy and metals businesses, but combing management teams across the business.

Now the Fortescue Energy Chief Executive Officer Mark Hutchinson has listed the company’s continuing interests in green energy projects.

In the company’s latest update to investors Hutchinson said: “As we lead the world in industrial decarbonisation, we remain steadfast in our commitment to green hydrogen.

“Our financial discipline will ensure that we focus hard only on those projects that are economic and deliver best value for shareholders.

“We continue to progress our initial four green hydrogen projects across Australia, the United States, Norway and Brazil, which each draw on the unique strengths of the countries they are in.’

Hutchinson said the PEM50 Project and Arizona Hydrogen Project are progressing, feasibility studies continue to progress at the Holmaneset Project in Norway, and the Pecem Green Hydrogen Project in Brazil is advancing to feasibility phase.

“Projects in Morocco, Oman, Egypt and Jordan will follow next, while we maintain a further pipeline of opportunities that will progress when power prices fall sufficiently to bring them to economic viability and global demand for green hydrogen increases.”

The update confirmed FY25 guidance for Energy capital expenditure and net operating expenditure at approximately US$500 million and approximately US$700 million, respectively.

Hutchinson said: “Our Fortescue Zero green technologies also went from strength to strength as we signed our first contracts to sell electrolysers from our Gladstone facility and finalised a multi-year deal with JLR to use Fortescue’s cutting-edge battery intelligence software, Elysia, in its next-generation electric vehicles.”

Stage one of the Gladstone Green Energy Manufacturing (Gladstone GEM) Centre (pictured) provides an initial capacity of over two gigawatts (GW) of electrolysers per annum, significantly increasing current global production.

Further reading:
Fortescue backpedals on green hydrogen, heads downstream

Picture: Fortescue/Gladstone Green Energy Manufacturing (Gladstone GEM) Centre