Fortescue Metals Group, the world’s fourth-largest iron ore miner that is controlled by Andrew Forrest, reported Thursday a record half-yearly profit after tax of US$4.08 billion, up 66% from the prior-year period on solid iron ore prices. Fortescue hiked dividends by 93%, but also announced it will funnel 10% of annual post-tax profits into green energy projects.
That means about US$400 million is already allocable to green energy based on first-half results. Moreover, analysts’ estimates point to a total profit of US$8.27 billion for the full year to June 30. That is potentially another US$419 million accruing in favor of Fortescue’s green budget.
What is Forrest planning in green energy with this cash arsenal of US$819 million (A$1.06 billion)? The vision is for company subsidiary Fortescue Future Industries to invest in renewable energy technologies such as wind, solar and green hydrogen. And this is no ordinary mission – Forrest has set his sights on creating at least 300 gigawatts, maybe even an impossible-sounding 1,000 gigawatts, of renewable energy capacity across the globe. (RENEW ECONOMY)
Fortescue is already setting up solar farms for its mines and aims to achieve ‘net-zero’ in terms of operational emissions by 2040. But green hydrogen is the real deal, as it could one day turn the ore-rich Pilbara into a green steelmaking region.
“Green hydrogen is the purest source of energy in the world and if we can improve and scale the technology, we can replace a significant portion of global emissions,” says Fortescue Chief executive Elizabeth Gaines. “So that is the driver and focus for us.”
Read the RENEW ECONOMY article HERE.
Image of Andrew Forrest: WIKIMEDIA COMMONS
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