Fortescue to spend $6.2 billion to decarbonize its iron ore business

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(Bloomberg) – Australian billionaire Andrew Forrest’s Fortescue Metals group will spend $6.2 billion over the next decade to decarbonize its iron ore operations, as it attempts to phase out fossil fuels from its iron ore business. 2030.

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The Perth-based company will spend $3.2 billion to build 2-3 gigawatts of renewable energy, battery storage and transmission lines and on-site charging infrastructure at its projects in Western Australia’s Pilbara region. , she said in a statement on Tuesday. Renewable energy will replace diesel in its mines and help it achieve what it calls « true zero » emissions, defined as no fossil fuels and no carbon offsetting « wherever possible ». , did he declare.

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Fortescue will also spend $1.3 billion on a fleet of low-carbon vehicles, $900 million on new infrastructure and $800 million on “demand response,” he said. The majority of investments will be made between 2024 and 2028.

Forrest has spoken of clean energy business opportunities and established Fortescue Future Industries in 2020 with a promise to manufacture 30 million tons of green hydrogen by 2030. But so far the company has invested little in building the hundreds of gigawatts of renewable energy needed for manufacturing. this hydrogen.