Fortescue approved investments of $750 million for three green projects

Australian mining company Fortescue has approved investments totaling about $750 million over the next three years in three green projects, Reuters reports.

The company is investing in a hydrogen hub in Phoenix, Arizona, USA, a 50 MW Gladstone PEM50 project in Queensland, Australia, and a direct reduced iron pilot plant in Chrismas Creek, Western Australia.

About $550 million will be allocated to the project in Phoenix, where the first production of liquid green hydrogen is planned for 2026.

The world’s fourth-largest iron ore producer, which is expanding its renewable hydrogen production through its Fortescue Energy unit, said it has also decided to accelerate projects in Brazil, Kenya, and Norway.

Fortescue is stepping up its push into the US markets. Over the past few days, the company has unveiled plans to establish an advanced manufacturing center in Michigan and a New York office, Fortescue Capital, to attract more investment in its green energy companies.

In August 2023, Fortescue announced that it would stop allocating 10% of its net iron ore profits to its clean energy business. Instead, projects will compete for capital allocation with others, with additional flows from external investors.

As GMK Center reported earlier, Fortescue has announced that it will no longer purchase carbon credits from this fiscal year. The funds allocated for this purpose will be used for its own decarbonization plan to achieve zero emissions by 2030. The company will focus on decarbonizing its operations, creating new opportunities in the production of clean steel, and building a global clean energy and green hydrogen business to replace fossil fuels.