Fortescue Strikes to Remove Fossil Gas Threat

Fortescue Metals Group has introduced that it’s going to make investments US$6.2 billion by 2030 to eradicate fossil gas use in its iron ore operations. This may allow FMG to provide its prospects with a carbon free product. The elimination of diesel, pure gasoline, and carbon offset purchases from its provide chain is predicted to scale back working prices by US$818 million per 12 months.

Fortescue is aiming for actual zero: “Actual zero refers to no fossil fuels and wherever potential no offsets. Offsets should solely be used as a short lived resolution whereas the expertise or innovation required to utterly decarbonize is developed.” It is a essential step ahead that many local weather activists have been pushing for.

“Fortescue made the announcement on the invitation of US President Biden’s First Movers Coalition and the United Nations World Compact, with the Secretary Normal of the United Nations on the CEO roundtable on ‘Enterprise management to rescue the Sustainable Growth Targets’. The technique will see the Firm lead the market by way of its response to rising buyer, group and investor expectations to scale back/eradicate carbon emissions.

“Fortescue additionally introduced that the Science Primarily based Targets Initiative (SBTi), will confirm and audit its emissions discount. This technical auditing initiative was instituted to make sure firms attain their Paris Settlement aim to restrict world warming to 1.5 levels.”

Twiggy Forest, Government Chairman of Fortescue Metals Group, has beforehand made headlines together with his gravity practice, hydrogen-powered mining vans, and the conversion of his delivery fleet to run on inexperienced power. Fortescue’s decarbonization technique and related funding will allow the corporate to keep away from 3 million tons of CO2 equal emissions every year.

Fortescue Metals Group intends to speculate the US$6.2 billion within the years 2024–28. The cash will probably be used to deploy 2–3 GW of  extra renewable power era and battery storage; and to improve the mining fleet and locomotives. It’s anticipated that this may displace roughly 700 million liters of diesel and 15 million GJ of gasoline every year by 2030.

“We’re already seeing direct advantages of the transition away from fossil fuels — we averted 78m liters of diesel utilization at our Chichester Hub in FY22 — however we should speed up our transition to the publish fossil gas period, driving world scale industrial change as local weather change continues to worsen. It’s going to additionally defend our price base, improve our margins and set an instance {that a} publish fossil gas period is nice industrial, widespread sense,” Fortescue Government Chairman Dr Andrew Forrest AO stated.

Avoiding Fossil Fuel Risk

Picture courtesy of Fortescue Future Industries.

“Fortescue, FFI and FMG, is shifting at velocity to transition into a world inexperienced metals, minerals, power and expertise Firm, able to delivering not simply inexperienced iron ore but in addition the minerals, information and expertise essential to the power transition.”

It’s heartening to see Australian mining firms making nice strides in the direction of the publish–fossil fuels period. Fortescue’s announcement follows sizzling on the heels of latest bulletins by BHP.

All charts courtesy of Fortescue Metals Group


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