Australian green energy pioneer Fortescue Metals Group (FMG) announced significant progress towards its ambitious target of producing 50 million tons of hydrogen by 2030. The company successfully converted and gained world-first certification for a ship to run on a mix of green ammonia and diesel, marking a major milestone in green shipping.
Led by Mark Hutchinson, who heads up Fortescue Energy, the company converted the Singapore-flagged vessel, Fortescue Green Pioneer, to operate on dual-fuel green ammonia. This breakthrough is expected to pave the way for greener shipping practices worldwide.
Fortescue remains committed to its key 2030 decarbonization targets. The company’s large-scale green hydrogen projects in Norway and Brazil are expected to play a pivotal role in achieving these goals. Hutchinson expressed confidence in the progress of these projects, emphasizing their importance in meeting the anticipated surge in demand for green hydrogen in the coming decade.
Green hydrogen, produced through the electrolysis of water using renewable energy, holds immense potential as a clean alternative to carbon-emitting fossil fuels in industries such as heavy transport, heating, and power generation. While production costs remain high, Fortescue is actively investing in research and development to make green hydrogen more affordable.
In addition to its hydrogen initiatives, Fortescue is also dedicated to decarbonizing its iron ore mining operations in the Pilbara region of Western Australia. The company currently operates three electric excavators and aims to convert its entire excavator fleet to electric, reducing diesel consumption by an estimated 95 million liters annually.
Fortescue’s iron ore shipments experienced a slight decline over the three months to March, dropping by 6% to 43.3 million tonnes due to operational disruptions. However, the company witnessed record shipments in March, indicating a strong recovery in output. The company maintains its guidance for total financial-year shipments but anticipates that they will be within the lower range of the expected 192 to 197 million tonne estimate.
Fortescue’s Iron Bridge project, a crucial high-quality iron ore development, is facing challenges related to a faulty water pipeline and plant teething issues. The company is actively working to replace a section of the pipeline and improve its performance. The mine’s process plan has also been reconfigured to address water supply issues.
Despite these setbacks, Fortescue remains optimistic about the future of the iron ore industry in China. The company observed strong growth in steel demand across various sectors, including infrastructure, manufacturing, and renewable energy. Fortescue’s presence in China, coupled with its commitment to sustainability and innovation, positions the company to capitalize on these growth opportunities.
