Mining giant Fortescue intends to strongly focus on its green metal export to China over the long term, where the majority of its customers are located.
The iron ore miner said the plan could eliminate more than 200 million tonnes (Mt) of its Scope 3 emissions (indirectly created as a result of the company’s activities) annually.
It also noted it is pursuing the opportunity to jointly develop a fully-integrated Australia-China green metal supply chain. This follows the visit of Chinese Premier Li Qiang to Fortescue’s green technology and test facility in Perth last June.
Currently, China represents more than 50 percent of the world’s steel production.
“We’re steadfastly committed to the green energy transition and making solid progress towards our goals, while also maintaining the financial discipline that has made Fortescue a success for the past 20 years,” said Mark Hutchinson, Fortescue Energy CEO.
The disclosure comes as Fortescue reported its net profit grew 18 percent to $5.66 billion (US$3.8 billion) and revenue rose 8 percent to $18.22 billion in fiscal 2024 from the last fiscal year.
This comes as iron ore shipments totalled 191.6 Mt, the second highest output contributing to the third-highest earnings in the company’s history.
During the fiscal year, the company’s Arizona Hydrogen and Gladstone PEM50 projects reached final investment decisions while the Holmaneset and Pecém green energy projects progressed to the feasibility phase.
“We officially opened our Gladstone Electrolyser Centre in Queensland earlier this year and started selling our electrolyser systems,” said Hutchinson.
“This technology and our other Fortescue Zero products and solutions are key to everything we are doing. Not only are we using them to decarbonise our own mining operations by 2030, we’re also now selling them to other customers, so they too can eliminate emissions.”
The company also completed its 100MW solar farm at North Star Junction near Iron Bridge, Western Australia.
Meanwhile, construction started on the high voltage transmission line between the Solomon and Eliwana mine sites, to complement the existing Pilbara Energy Connect transmission infrastructure connecting Solomon and Iron Bridge.
Fortescue aims to have all its mines and renewable generation assets interconnected into a single power grid by 2028 and to achieve 100 percent renewable energy by 2030.
“We’re creating a portfolio that is ambitious and develops complementary capabilities across the entire green energy value chain, from green electron and molecule production, to battery power systems, green technology development and of course green financing through Fortescue Capital,” said Hutchinson.
“This means we can maximise efficiencies, innovation, and create a real competitive leg-up on the competition, while also having the knowledge base, adaptability, and optionality to quickly respond to shifts in market conditions and capitalise on emerging opportunities.”
