Andrew Forrest’s Fortescue Metals Group has pressed ‘go’ on three green hydrogen projects in Australia and internationally to cost a collective $1.14 billion (US$750 million) over the next three years.
The company’s board announced final investment decision had been reached on two green energy projects including one planned for Gladstone, Queensland and a green metals project planned for the Pilbara region of Western Australia.
FMG also named a number of projects to be fast tracked for potential approval in Brazil, Kenya and Norway ‘representing a geographical and technological diversity to establish a global glide path for Fortescue Energy and its green hydrogen and adjacent technologies and industries to be firmly established’.
However the board declined to proceed at this point with the mooted Gibson Island green hydrogen and ammonia project in Queensland in association with fertiliser group Incitec Pivot.
FMG told investors: “The Gibson Island Green Hydrogen and Ammonia Project in Queensland is requiring further work as Australia struggles to shed its petrostate status and still suffers structurally high green electricity costs.”
The three projects confirmed were:
Fortescue Energy CEO Mark Hutchinson said: “This is the start of a pipeline of green energy projects we are dedicated to delivering.”
Shares in Fortescue rose 35 cents or 1.4 per cent to $25.65 in afternoon trade.
The Phoenix hub comprises an 80 megawatt electrolyser and liquefaction facility with production capacity of up to 11,000 tonnes per year of green hydrogen from 2026.
The 50 megawatt green hydrogen project in Gladstone uses Fortescue’s own electrolyser technology, with first production slated for 2025.
Fortescue is building an electrolyser manufacturing plant at Gladstone in the first stage of as planned 100 hectare Green Energy Manufacturing Centre (GEM).
The green iron plant to be built at Christmas Creek in the Pilbara will use existing green hydrogen and green electricity from solar generation, hematite and magnetite ore production capacity and existing infrastructure.
Fortescue Metals CEO Dino Otranto said: “We are confident that our approach will drive growth for Fortescue through new, high value products being sold into new markets, ultimately leading to an increase in the number of iron units we sell.”
Picture: FMG/Gladstone electrolyser factory