Fortescue Metals Group has received board approval for a Final Investment Decision (FID) on three major green energy projects with an estimated total investment of approximately USD 750 million (AUD 1.1 billion) over the next three years.
The Phoenix Hydrogen Hub in the USA, the Gladstone PEM50 Project in Australia, and the Christmas Creek Green Iron Trial Commercial Plant in Western Australia represent a pivotal step towards establishing Fortescue as a key player in the global green energy landscape.
The board has also fast-tracked projects in Brazil, Kenya, and Norway, showcasing Fortescue’s commitment to a diverse range of technologies and geographies to solidify its position in the green energy sector, the company said in an ASX announcement.
These projects, among the first-ever green hydrogen deals to progress to FID in the United States and Australia, aim to scale up Fortescue’s global green energy production, leveraging lessons learned from these initial initiatives.
Fortescue Energy CEO Mark Hutchinson emphasised the company’s disciplined approach, stating, “Diversity in technology and geography at conservative scales for Fortescue projects reflects our disciplined approach to learning while we do, prior to large scale investments.”
The Phoenix Hydrogen Hub, located in Arizona, USA, involves an 80MW electrolyser and liquefaction facility with a production capacity of up to 11,000 tonnes per annum of liquid green hydrogen.
With an investment of approximately USD 550 million, first production is anticipated in 2026, positioning Fortescue strategically in one of the most attractive energy markets globally.
The Gladstone PEM50 Project in Queensland, Australia, a 50MW green hydrogen endeavour, will utilise Fortescue’s proprietary electrolyser technology.
With an investment of up to USD 150 million, this project is set to commence production in 2025, showcasing industrial-scale hydrogen production and Fortescue’s commitment to high-quality hydrogen systems.
Furthermore, the Christmas Creek Green Iron Trial Commercial Plant, a green iron production initiative in Western Australia, has received approval with an investment of up to USD 50 million.
Using existing green hydrogen and solar-generated electricity, the project aims to produce over 1,500 tonnes annually, marking a significant step towards reducing Scope 3 emissions in Fortescue’s iron production.
Fortescue Metals CEO Dino Otranto expressed confidence in the company’s proactive approach to green iron, stating, “We are confident that our approach will drive growth for Fortescue through new, high-value products being sold into new markets, ultimately leading to an increase in the number of iron units we sell.”
The FY24 capital expenditure guidance for Fortescue Energy has been updated to USD 500 million, reflecting incremental investments in the Phoenix Hydrogen Hub and the Gladstone PEM50 Project.
Fortescue Metals’ FY24 capital expenditure remains unchanged at USD 2.8 – USD 3.2 billion.
The company said these initiatives underscore its commitment to sustainable energy practices and its role as a pioneer in the global green energy and metals sector.
