Australia’s Fortescue approves $750 mln investment for three green projects
MELBOURNE, Nov 21 (Reuters) – Australia’s Fortescue (FMG.AX) on Tuesday approved an estimated total investment of about $750 million over the next three years for two green energy projects and one green steel project as the iron ore miner seeks to become a top-tier clean energy producer.
Fortescue approved investments in the U.S. hydrogen hub in Phoenix, Arizona; the Gladstone 50 megawatt green hydrogen project in Queensland, Australia; and the Christmas Creek green iron trial commercial plant in Western Australia.
About $550 million will be used for developing an electrolyser and liquefaction facility in Phoenix, where first production of liquid green hydrogen is targeted for 2026.
The world’s fourth-largest iron ore maker, which is expanding into production of hydrogen from renewable resources under its Fortescue Energy unit, said it had also decided to fast-track projects in Brazil, Kenya and Norway.
Fortescue is intensifying its push into the U.S. markets.
In the past few days, it has announced plans to set up an advanced manufacturing centre in Michigan and an office in New York, Fortescue Capital, to attract more investment to its green energy companies.
Under a plan to ramp up its green energy business, Fortescue said in August it would stop allocating 10% of its net profit to that unit. Instead, projects and investments would compete for capital allocation, with additional flows from outside investors.
Fortescue expects to hold stakes of 25% to 50% in projects with outside investors.
More details are expected to be unveiled at Fortescue’s annual shareholder meeting later on Tuesday.
Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu and Richard Chang
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