Fortescue powers ahead (green power of course)

Green hydrogen production and manufacturing company Fortescue Future Industries is powering ahead with expansions across the globe and plans to maintain yearly investment of between US$400 and US$600 million, inclusive of US$100 to US$200 million of capital expenditure and US$300 to US$400 million of operating expenditure.

According to the third quarter results of parent company Fortescue Metals Group, FFI has quickly taken a global leadership position in green energy and green technology and is committed to producing zero-carbon green hydrogen.

Fortescue CEO Elizabeth Gaines said: “Fortescue’s transition to a vertically integrated green energy and resources company continues to gain momentum.

“During the quarter, Fortescue completed the acquisition of Williams Advanced Engineering (WAE), providing Fortescue with critical technology and expertise in high-performance battery systems and electrification, with key integration activities well advanced.”

FFI and WAE – purchased during the quarter for US$221 million – are developing the Infinity Train, a world’s first regenerating battery electric iron ore train, eliminating diesel and the associated CO2 emissions from Fortescue’s iron ore trains.

“Building on our commitment to integrate sustainability into all aspects of our operations, Fortescue successfully completed its inaugural green financing offering in April 2022, with proceeds to be applied to decarbonisation initiatives as we deliver on achieving carbon neutrality by 2030.”

FMG completed a US$1.5 billion offering of Senior Notes on 7 April 2022, including Fortescue’s inaugural US$800 million Green Senior Note issue.

The quarter was also a big one for FFI’s manufacturing plans, with the company beginning construction of its Green Energy Manufacturing Centre in Gladstone, Queensland (pictured) and advancing a portfolio of green hydrogen projects and technologies.

The first stage development at Gladstone is an electrolyser manufacturing facility with initial capacity of two gigawatts per annum and investment of up to US$83 million.

During the quarter FFI also:

  • Entered a Memorandum of Understanding to partner with European energy networks and energy infrastructure company E.ON to supply up to five million tonnes per annum of green, renewable hydrogen to Europe by 2030
  • And established a working alliance with Airbus to facilitate the decarbonisation of the aviation industry through the supply of green hydrogen.

Picture: Fortescue Future Industries

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