Fortescue Metals Group Ltd (ASX: FMG) announced that its aims to become carbon neutral by 2030, ten years earlier than the previous target. The company said that FFI, a wholly-owned subsidiary of Fortescue, will be a key enabler of this target.
The company said that it will also incorporate these carbon emissions targets into its formal remuneration structure.
Clean energy instead of 1 billion litres diesel
The company said that it is seeking to move from being a major consumer of fossil fuel with a current trajectory of more than 1 billion litres a year of diesel being used across the operations if no remedial action is taken, to a major clean and renewable energy exporter.
FFI to be a key enabler
FMG said that Fortescue Future Industries (FFI), a wholly owned subsidiary of Fortescue, will be a key enabler of this target through the development of green electricity, green hydrogen, and green ammonia projects in Australia.
The company said that FFI is advancing projects across Australia including Tasmania, to build large-scale renewable energy and green hydrogen production capacity, which will expedite the substitution of green hydrogen and green ammonia for carbon-based fuels.
FMG said that these projects will, with the support of Australia’s governments, contribute to a significant reduction in national carbon emissions.
The company said that independent verification will be employed to monitor the Company’s march to carbon neutrality.
Key projects planned by June 2021
Fortescue said that it is undertaking to deliver several key projects by the stretch target of 30 June 2021 through FFI and its Operations team, to underpin its pathway to decarbonisation.
These projects include: developing a ship design powered by green ammonia and trialling that design in new ammonia engine technology, at scale; testing large battery technology in haul trucks; trialling hydrogen fuel cell power for drill rigs; trialling technology on locomotives to run on green ammonia; and conducting trials to use renewable energy in the Pilbara to convert iron ore to green iron at low temperatures, without coal.
Fortescue Chief Executive Officer Elizabeth Gaines noted that these projects are in addition to Fortescue’s significant investment with our partners into energy infrastructure, including the Chichester Solar Gas Hybrid Project and Pilbara Energy Connect program.
Pay to be based on emission targets
Fortescue said that it will also incorporate these carbon emissions targets into its formal remuneration structure, including short and long-term incentives across the Company.
Dr Andrew Forrest, Chairman of Fortescue Metals Group Ltd said: “Fortescue’s strong focus on green energy and our carbon neutrality targets will sit alongside our continuing excellence in, and commitment to, our iron ore business. While our green energy and industry initiatives may one day significantly outscale our iron ore business due to the global demand for renewable energy, our commitment to iron ore and resources globally remains indefeasible.
Our aim is to provide the two “missing links” in the climate change battle, to create both the demand and the supply of green hydrogen. Due to its high energy performance and environmental neutrality, green hydrogen and direct green electricity has the potential to eliminate fossil fuels from supply chains. Once established, these advances will also substantially reduce Fortescue’s operating costs.”
*Image Source: Fortescue Metals Group Ltd