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Highlights:
- Fortescue has announced that it has updated its heavy industry decarbonisation strategy.
- As per the new strategy, the company will eliminate the usage of fossil fuels, which will reduce greenhouse gas emissions.
- The estimated investment for implementing this strategy will be US$6.2 billion.
Vertically integrated green energy and resource group Fortescue Metals Group Ltd (ASX:FMG) announced today that it has updated its world-leading heavy industry decarbonisation strategy.
The strategy primarily aims to eliminate the usage of fossil fuels and achieve real zero terrestrial emissions across the company’s iron ore operations by 2030. The investment is not only expected to eliminate Fortescue’s fossil fuel risk profile but also allow it to supply a carbon-free product to its customers.
Meanwhile, the share price of Fortescue was quoted at AU$17.61 per share on ASX after gaining marginally by 0.916% as of 10:24 AM AEST today (20 September 2022).
Details of Fortescue’s updated heavy industry decarbonisation strategy:
According to Fortescue, this strategy will help the company to lead the industry with respect to the response from growing customers, community, and investor expectations to reduce carbon emissions. The estimated amount needed to invest for implementing the updated strategy is US$6.2 billion which is primarily planned in between FY24 and FY28.
As a result of this investment and implementation of the new strategy, Fortescue anticipates to get significant economic returns along with operating cost savings due to the elimination of fossil fuels such as diesel, natural gas, and carbon from its operations.
The company also informed that it is currently well-positioned to fund its first-mover advantage and commercialise decarbonisation techniques.
Fortescue further added that the Science Based Targets Initiative (SBTi) would audit its updated strategy with respect to reduction in emissions. SBTi’s audit will ensure whether Fortescue’s strategy reach their Paris Agreement goal to limit global warming to 1.5 degrees.
Image source: © Ipopba | Megapixl.com
Fortescue’s updated strategy and the associated investment are expected to provide the following environmental and economic returns by 2030:
