Fortescue to spend $9.2b to eliminate fossil fuel use by 2030

Billionaire Andrew ‘Twiggy’ Forest’s Fortescue Metals Group says it will spend $9 billion to eliminate fossil fuel use and achieve zero terrestrial emissions, supplying its customers with a carbon-free product by 2030.

Fortescue said it has updated its decarbonisation strategy which will result in the mining giant eliminating its fossil fuel risk profile and gaining a first-mover advantage in the race towards removing carbon from heavy industry.

“Fortescue expects to generate attractive economic returns from its investment arising from the operating cost savings due to the elimination of diesel, natural gas, and carbon offset purchases from its supply chain,” the $54 billion ASX-listed miner said.

The company says it will invest the $9.2 billion primarily between 2024 and 2028 on rolling out 2 to 3 gigawatts of renewable energy generation and battery storage to power a green mining fleet, electrifying its rail locomotive ore haulage system in the process.

Studies are underway to optimise localised wind and solar resources, the company said.

“The investment is expected to generate a positive net present value (NPV) through enabling the
displacement of approximately 700 million litres of diesel and 15 million GJ of gas per annum by
2030, as well as the associated reduction in CO2 emissions,” it said.

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The company made the announcement Monday at a CEO roundtable during a United Nations business leadership summit to which it was invited by the US President Biden’s First Movers Coalition and the United Nations Global Compact.

The company expects to lead the market in its response to growing customer, community and investor expectations to reduce or eliminate carbon emissions.