Fortescue Metals Group, an iron ore heavyweight that supports carbon-intensive steel production, has frantically dived into the green hydrogen business to achieve carbon neutrality by 2030.
The world's No. 4 iron ore producer plans to start producing "zero-emission" hydrogen using renewable energy for export to Japan and other energy-hungry economies as early as 2023.
"We are clearly known as a supplier of iron ore," CEO Elizabeth Gaines said in an interview with Nikkei, but Fortescue is "looking for the opportunity to develop and expand our overall business to the supply of green energy and green hydrogen in particular."
Fortescue set its sights on Tasmania for a manufacturing facility. The island state was fully powered by renewable electricity last year and aims to double its renewable energy production by 2040. Fortescue aims to make an investment decision on hydrogen production this year and use hydrogen and nitrogen to produce 250,000 tons of ammonia annually.
Fortescue is also monitoring Western Australia, which is home to its headquarters and mines, to take advantage of the state government's support "for the development of a hydrogen export market," Gaines said. The company said in March that a subsidiary had signed a memorandum of understanding with Brazil's leading port operator to explore the joint development of a green hydrogen plant in Rio de Janeiro.
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