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Monday, Feb 26, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Fortescue invests US$750M in American and Australian ‘green’ hydrogen and steel projects

The major Australian company says this is the start of a green energy project pipeline it will establish

Fortescue Metals invest US$750M in American and Australian green hydrogen and steel projects
Fortescue's Chairman Andrew Forrest (centre) shakes hands with Brazilian President Lula da Silva last week after discussing a proposed green hydrogen project in the country. Photo via Fortescue Metals Group

Australia’s Fortescue Metals Group Ltd (ASX: FMG) is investing over AUD$1 billion in an Arizona hydrogen facility, a Queensland hydrogen project and an iron production plant in Western Australia powered by “green” hydrogen produced on-site.

On Tuesday, the company announced that its Board had made the final investment decision for the three projects.

Fortescue will be allocating US$550 million to the Phoenix Hydrogen Hub, US$150 million to the Gladstone PEM50 hydrogen production project in Queensland and US$50 million to the Christmas Creek Green Iron Trial Commercial Plant in Western Australia over the next three years.

The company also plans to fast-track green energy projects in Brazil, Kenya and Norway in the near future.

The Phoenix Hydrogen Hub will be capable of producing 11,000 tonnes of liquified hydrogen annually starting in 2026, first production at the GladstonePEM50 project is expected in 2025 and the Christmas Creek operation will begin producing 1,500 tonnes of steel per year starting in 2025 as well.

Read more: South Australia selects ATCO and BOC to design major hydrogen facility near Whyalla

Read more: Hyundai Motor to drive hydrogen mobility in Saudi Arabia, enters $500M vehicle manufacturing venture

Construction of the Phoenix hydrogen plant is expected to start during the second half of next year. About 350 jobs will be created during its development. A 69-kilovolt transmission line is being installed to provide electricity to the site.

The Gladstone PEM50 project will be capable of producing 8,000 tonnes of liquified hydrogen per year.

“Fortescue is taking a proactive approach to green iron, including embracing innovative technologies that will help us step away from the use of fossil fuels,” said the company’s CEO, Dino Otranto. Fortescue says Christmas Creek represents a significant milestone in its mission to produce zero-carbon iron.

Fortescue currently ships about 190 million tonnes of iron ore to customers in countries like China, Japan and South Korea every year. The company was established in 2003.

So-called green hydrogen has been gaining attention from many nations and companies throughout the globe for its potential as a sustainable clean energy source. A report released last year by Washington, DC’s Vantage Market Research predicted that the global hydrogen market would be worth about US$8.3 billion more in 2028 than it was in 2021.


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