Fortescue launches green capital arm

Fortescue Metals Group has announced the formation of a new green energy investment accelerator platform Fortescue Capital, headquartered in New York City.

The company named Robert Tichio (pictured) as Chief Executive Officer (CEO) and Managing Partner of the group, which it described as the next step in Fortescue’s commitment to deliver green energy projects and decarbonisation investments.

The platform is tasked with delivering greater returns for shareholders, according to a statement.

Fortescue Energy CEO Mark Hutchinson said: “Fortescue is taking its global pipeline of green hydrogen and green ammonia projects to Final Investment Decision, and in doing so has communicated our intention and desire to bring additional equity investors onboard.

“Further, Fortescue has previously communicated its planned investment to decarbonise its Pilbara operations, and we see Fortescue Capital as an essential tool of engagement as we embark on both missions.”

Hutchinson said Tichio brought with him decades of experience and would lead a team with deep experience and broad expertise in capital formation and investment management in the energy industry.

Before joining Fortescue, Mr Tichio spent over 17 years at Riverstone Holdings, a New York based private equity firm, that has seen total capital raised across a variety of private equity and related products exceed US$42 billion.

Tichio will be joined by a senior leadership team which includes Nathan Craig, Rael McNally and Jennifer Zarrilli. Each will serve as Managing Directors and be based in New York.

Tichio said: “Fortescue has demonstrated unmatched leadership in calling for capital formation to support large scale, industrial solutions that can provide durable and high-impact decarbonisation pathways for difficult-to-decarbonise emitting categories.”

Fortescue Capital is being developed as a fiduciary for third-party capital, which will complement the Energy and Metals internal corporate finance teams.

The company expects to hold equity stakes between 25 per cent and 50 per cent in each project, with third-party investors.

Picture: Robert Tichio