Fortescue invests 10% of profits into green hydrogen sector

Andrew Forrest’s Fortescue metals group has confirmed it will continue to invest ten per cent of net profits after tax into developing its green hydrogen offshoot, Fortescue Future Industries.

Announcing the group’s results for the half year to December, the company said FFI’s FY22 anticipated expenditure was in the range of US$400 – US$600 million.

This was ‘inclusive of US$100 – US$200 million of capital expenditure and US$300 – US$400 million of operating expenditure’.

Fortescue reported revenue of US$8.1 billion in H1 FY22, and an underlying EBITDA of US$4.8 billion, 28 per cent lower than the previous corresponding period.

During the half Fortescue Future Industries:

• Invested to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030
• Received planning approval from the Queensland Government for the Global Green Energy Manufacturing Centre in Gladstone, Queensland. The first stage development is an electrolyser manufacturing facility with investment of up to US$83 million
• Completed the first phase of studies with Incitec Pivot Limited to convert the Gibson Island, Brisbane ammonia production facility to be powered by green hydrogen
• Entered into an agreement to acquire Williams Advanced Engineering Limited (WAE)
• And progressed rail decarbonisation initiatives with the arrival of two additional four stroke locomotives for testing on a blended ammonia fuel system (pictured).

Picture: Fortescue Future Industrial/ test locomotive powered by green ammonia

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