Fortescue Metals, the iron ore and green energy giant led by Andrew Forrest, is steadfast in its commitment to a bold target: producing 15 million tonnes of green hydrogen annually by 2030.
While the company initially unveiled this ambitious goal in 2021, it has encountered complexities in realizing it. Nevertheless, Fortescue remains on track, and recent developments indicate progress towards becoming a major player in the global green hydrogen market.
Green hydrogen is a form of hydrogen produced through the process of electrolysis, using renewable energy sources like solar and wind to split water molecules into hydrogen and oxygen. Unlike grey hydrogen, which is derived from fossil fuels without carbon capture, green hydrogen offers a sustainable and emission-free energy solution, making it a crucial component of the world’s efforts to combat climate change and transition towards cleaner energy systems.
Fortescue has been actively working on multiple green hydrogen projects worldwide. In Australia, the company is eyeing three significant green hydrogen ventures, awaiting support from the Australian government’s $2 billion funding scheme. Additionally, Fortescue has five green hydrogen projects in the pipeline across regions such as the United States, Brazil, Europe, and Africa. The company aims to grant financial approval to these projects by the end of 2023.
The company’s most advanced project is located in Arizona, where it recently invested $US24 million to acquire a company involved in an 80MW electrolyser-driven green hydrogen project. However, despite promising progress, Fortescue acknowledges that achieving its 15 million tonnes per year target will require substantial investment and robust expansion strategies.
In Australia, Fortescue’s most prospective green hydrogen project is situated at Gibson Island, Queensland. The company plans to establish a 500MW hydrogen electrolysis facility, generating green hydrogen for use in ammonia manufacturing. The project’s feasibility and progress towards a final investment decision indicate Fortescue’s dedication to capital discipline and cost efficiency.
The recently announced $2 billion Hydrogen Headstart program, fast-tracked to commence in October this year, is expected to play a crucial role in promoting green hydrogen adoption in Australia. Fortescue emphasizes that strong policy support will enhance Australia’s competitive positioning in the global green hydrogen market, particularly as the United States offers substantial incentives.
Fortescue Metals’ resolute ambition to produce 15 million tonnes of green hydrogen annually by 2030 represents a significant step in advancing the global green hydrogen economy. Despite challenges, the company remains determined, leveraging strategic partnerships and phased project approaches to attract capital and become a key player in the sustainable energy transition.
