Fortescue approves $1.1b investment for new projects

Fortescue chairman Dr Andrew Forrest standing in front of Fortescue-branded battery (projects)
Fortescue chairman Dr Andrew Forrest

Fortescue has approved an estimated total investment of about AUD$1.1 billion over the next three years for two green energy projects and one green steel project, according to Reuters.

Related article: Australia’s Fortescue launches green investment accelerator platform

The approved investments include the US hydrogen hub in Phoenix, Arizona, the Gladstone 50MW green hydrogen project in Queensland; and the Christmas Creek green iron trial commercial plant in Western Australia.

Almost half the funds will be used for developing an electrolyser and liquefaction facility in Phoenix, where first production of liquid green hydrogen is targeted for 2026.

Fortescue has reportedly also decided to fast-track projects in Brazil, Kenya and Norway. The company is also stepping up its push into the US market, and has revealed plans to set up an advanced manufacturing centre in Michigan and an office in New York, Fortescue Capital, to secure more investment in its green energy companies.

Related article: Fortescue invests in Norwegian green hydrogen firm

Under a plan to ramp up its green energy business, Fortescue will cease allocating 10% of its net profit to that unit. Instead, projects and investments would compete for capital allocation, with additional funds from outside investors.

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