Fortescue commits to zero emissions by 2040
Fortescue Metals Group, a mining company run by Australia’s richest men, has announced its ambitious goal of reducing iron ore’s environmental footprint by transforming itself into a clean energy company.
The Perth-based band on Tuesday Scope 3 net zero emissions by 2040 Hydrogen produced from renewable energies is used to produce “green” iron and ultimately steel.
“Fortescue has started the transition from a pure iron ore producer to a renewable energy and green resource company,” said Elizabeth Gaines, CEO of FMG.
The steel industry accounts for around 7-9% of all direct fossil fuel emissions, and major iron ore producers should tackle so-called Scope 3 emissions (greenhouse gases emitted by the products they sell) investors. I am under pressure. This is 20 times the operational emissions.
FMG’s promise sets it apart from major Australian rivals, BHP and Rio Tinto. They haven’t set absolute targets for Scope 3 emissions and instead are working with customers to reduce carbon resistance in steel production by 30% over the next decade.
Andrew Forrest, founder of FMG and billionaire businessman with a 36.7% shareholder, takes a different approach. He believes that the decarbonization of the steel industry could be a major source of profit for the company.
Through a new division called Fortescue Future Industries, FMG will produce 15 million tonnes of green hydrogen per year by 2030 using renewable energy to separate the oxygen and hydrogen atoms from water in a device called electrolytic cell. I plan to do it.
To finance the project, FMG has informed investors that it will invest 10% of its annual income in FFI. Amid record-breaking iron ore prices, FMG reported pre-tax profit of $ 14.7 billion for the year through June.
Forrest, the president of FMG, not only supplies green hydrogen nationally and internationally, but also uses the fuel to make green irons, sell them to customers, and deliver them directly to the electric arc furnace (EAF) to produce steel. I want to make it.
it’s An alternative to the traditional steelmaking process Here in a huge blast furnace, metallurgical coal is combined with iron ore to release molten pig iron, which is refined into steel.
“Our work… FFI CEO Julie Shuttleworth said:
However, there are significant challenges to overcome. Experts say FMG will need two to three times more electricity than Australia’s current electricity supply to meet its goal of producing 15 million tonnes of green hydrogen per year by 2030.
BHP estimates blast furnaces will account for more than half of steel production in 2050, as Asian steelmakers are reluctant to switch to EAF given the younger fleet. Instead, they believe they will look for CO2 reduction options.
The Australian Corporate Responsibility Center, a group of activist shareholders, welcomed the announcement of the FMG.
“BHP and Rio Tinto must be embarrassed to lose to what was once called a ‘junior miner’,” said Group Climate director Dan Gotcher. “It’s time for BHP and Rio Tinto to set binding targets for Scope 3 shows, rather than just funding research and collaborating with customers.
Last month, influential deputy adviser Glass Lewis told clients: Vote against BHP’s climate transition action plan at next month’s annual meeting, citing concerns about plans to tackle Scope 3 emissions.
Separately, on Tuesday, 28 of the world’s largest mining companies pledged to achieve zero net operating emissions by 2050.
However, the International Council on Mining and Metals, which includes BHP and Rio as members, has stopped promising a net zero target for Scope 3. Instead, its members will set Scope 3 targets by the end of the year. end of 2023.
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