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Fortescue sweeps green project approvals

Fortescue green

Fortescue has announced milestone approvals across its green metals and energy projects.

The company’s board approved final investment decisions (FID) on the Gladstone PEM50 project in Queensland, the Christmas Creek green iron trial commercial plant in Western Australia, and the Phoenix hydrogen hub in the US.

The estimated total investment in the three projects is projected to be around $US750 million ($1.14 billion) over the next three years.

Fortescue said the projects are the first green hydrogen deals ever to be progressed to FID in the US and Australia, with a pipeline of projects to follow which will significantly scale up the company’s global green energy production.

“The Phoenix hydrogen hub establishes Fortescue in one of the most attractive energy markets in the world, facilitated by the Inflation Reduction Act,” Fortescue Energy chief executive officer Mark Hutchinson said.

Just last week Fortescue announced plans to “rapidly” expand into the US as a result of the Act, coinciding with its release of Fortescue Capital, a new green energy investment platform.

In line with Fortescue’s plans for green expansion, the Christmas Creek green iron trial commercial plant aims to utilise existing green hydrogen and green electricity from solar generation for hematite and magnetite ore production.

With an investment of up to $US50 million ($76 million), annual production starting in 2025 is set to reach more than 1500 tonnes.

The Gladstone PEM50 project is a 50-megawatt green hydrogen plant utilising Fortescue’s electrolyser technology.

Total investment for the project is expected to reach up to $US150 million ($228 million), with first production aimed to commence in 2025.

“The Gladstone PEM50 project in Queensland will produce hydrogen at an industrial scale, allowing us to demonstrate the high quality of Fortescue’s own hydrogen systems,” Hutchinson said.

“With a disciplined approach to capital allocation, we continue to target double-digit project returns.

“This is the start of a pipeline of green energy projects we are dedicated to delivering.”

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