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HomeinvestmentAustralia's Fortescue approves $750 mln investment for three green projects

Australia’s Fortescue approves $750 mln investment for three green projects

[1/2] An autonomous vehicle drives along a road as it collects iron ore at Australia’s Fortescue Metals Group (FMG) mine in the Pilbara region, located south-east of the coastal town of Port Hedland in Western Australia, November 29, 2018. REUTERS/Melanie Burton/File Photo Acquire Licensing Rights
Summary
Companies Board approves Arizona hydrogen hub
Australian hydrogen, green iron projects OK’d for investment
Shareholders do not vote for remuneration report at AGM
MELBOURNE, Nov 21 (Reuters) – Australia’s Fortescue (FMG.AX) approved on Tuesday 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 with its Fortescue Energy unit, said it had also decided to fast-track projects in Brazil, Kenya and Norway.
Fortescue is stepping up its push into the U.S. markets.
In the past few days, it has unveiled plans to set up an advanced manufacturing centre in Michigan and an office in New York, Fortescue Capital, to lure 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.
At Tuesday’s annual general meeting, shareholders voted against a remuneration resolution after the board approved special payments to retiring executives that advisers said were out of line with industry practice.
Fortescue shares were up 1% on Tuesday in a strong market for iron ore miners, with peers BHP (BHP.AX) and Rio Tinto (RIO.AX) up 1.5% and 2% respectively.
Reporting by Himanshi Akhand in Bengaluru; Editing by Richard Chang and Clarence Fernandez
Our Standards: The Thomson Reuters Trust Principles.

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