Australian iron ore major Fortescue Metals is set to release a new set of targets next month, with emissions reduction at its core as it seeks to reach carbon neutrality, and become the world’s first producer of green iron ore.
While it has taken some time for Fortescue to join the likes of BHP and Rio Tinto in addressing ‘Scope 3’ emissions – the gases produced by customers burning raw materials sold by mining corporations – now that it has, it’s forged ahead with the most ambitious green targets yet. The major has vowed to reach carbon neutral emissions from operations by 2030 (while most other miners have a goal of 2050), and has also committed to supplying 15 million tonnes of green hydrogen every year by 2030.
The group’s clean energy venture, Fortescue Future Industries (FFI) will also be used to develop emerging green technologies. Through FFI, the company is anticipated to spend between $400m and $600m until June 2022 on investments into green transportation, as well as decarbonisation technologies. At the end of July this year, the green spin-off announced it was investigating green hydrogen potentials in India in collaboration with JSW Future Energy Limited.
“FFI’s goal is to become the world’s leading fully renewable energy and green products company,” said FFI CEO, Julie Shuttleworth at the time. “The world’s transition to a renewable energy future represents a major growth opportunity and there will be many important markets for green hydrogen in the coming decade.”
Perhaps most exciting is the firm’s decision to set its sights on green steel, with chairman Andrew Forrest saying at a briefing:
“The really big steps for the creation of steel delivered to customers to be decarbonised has to be first the big one – create green iron ore.”
The group has already successfully produced high quality green iron ore in July this year, as well as tested ammonia-powered freight. Cutting emissions during this process would be a game changer for the miner, with Bloomberg reporting its Scope 3 emissions were 252 million tonnes of CO2 equivalent in 2021 – with the majority of this coming from its steel manufacturing process.
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