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Summary
- The theme of renewable energy and climate change reverberated across the AGM of the ASX-listed emerging iron ore mammoth – Fortescue Metals Group Limited (ASX:FMG).
- The ex-CEO and the current Chairman Dr John Andrew Henry Forrest AO took the shareholders to the world of renewable energy, promising a commercial drive that would end the climate change.
- Taking the platform via a video link from Paraguay, Dr Andrew Forrest revealed that FMG would aggressively move into the multibillion-dollar renewable energy sector.
Andrew Forrest, the chairman of the ASX-listed iron ore behemoth Fortescue Metals Group Limited (ASX:FMG), has announced his foray into renewable energy sector through its Fortescue Future Industries arm. The mining tycoon outlined his green energy plans on Wednesday with an aim to lead a commercial drive to fight climate change.
Andrew Forrest Dons the Renewable Hat to fight Climate Change
Image Source: © Kalkine Group 2020
Speaking at the Annual General Meeting on 11 November 2020 via a video link from Paraguay, Dr Andrew Forrest revealed that FMG would aggressively move into the multibillion-dollar renewable energy sector.
Taking the platform to reveal some of the future plans of the iron ore group, Andrew Forrest mentioned that a team from FMG had already visited 23 countries to secure assets for renewable energy generation and now plans to further visit 24 more countries.
The Ex-CEO and the current chairman further mentioned:
FMG’s Future Industries to Operate Amidst The Major League
Also, Dr Forrest suggested that the group has identified resources, which in gigawatt terms would take FMG to the major league where players like Chevron and Total operate.
Further adding to his speech, Dr Andrew Forrest mentioned that he would transform the group into a renewable and resource company without denting the balance sheet.
The conception of FMG’s Future Industries arm is a considerable addition to the group’s existing portfolio, which the chairman compared with the iron ore unit while presenting the transformational case.
FFIs To Take Care of Finance, Development, and Operations
Dr Forrest notified the shareholders that each project in the renewable space would be on a merit basis as he vouched about FMG’s capacity to supply green hydrogen and green ammonia alongside the development of large-scale hydropower, solar, and wind projects.
Continuing ahead, Dr Forrest mentioned that the group would establish the market for renewable as it did with FMG and each finance would only be secured against the assets.
Dr Forrest citied that the FFIs would take care of the finance, development, and operation of renewable energy projects and would aim to build 235 gigawatts of installed energy capacity.
The chairman asserted that FMG would lead the way for large volume, low-cost green energy and others will join soon, marking a point where shareholders would witness a commercial driving end of climate change.
Renewable Energy Targets
Dr Andrew Forrest, who currently owns ~ 35 per cent of FMG’s share told other shareholders that the first target of 235 gigawatts would make the group one of the largest energy companies; however, the renewable dream would be financed very conservatively, and there is no timeline.
The group is already committed to investing ~ $1 billion in decarbonisation and renewable development across its iron ore operations by 2023.
