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Released November 29, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Australian mining giant Fortescue Metals Group Limited has pulled the trigger on US$750 million worth of green energy projects as it seeks to transform itself into a clean energy company.
The final investment decisions (FIDs), some through its clean energy arm Fortescue Future Industries (FFI) (East Perth, Australia) include the Gladstone PEM50 green hydrogen project in Queensland, a green iron project in western Australia and a hydrogen hub in Phoenix, Arizona. The company also stated that some other projects will be fast-tracked including one in the Port of Pecem, Brazil, "Project Chui" in Kenya and Holmaneset in Norway.
The Gladstone PEM50 Project, located in Queensland, is a two-stage 50-megawatt (MW) green hydrogen project. Phase One covers the installation of a 30-MW electrolyser plant with construction expected to commence in 2024, with first production of green hydrogen in 2025. The remaining 20 MW capacity will be installed and commissioned in 2028, aligned with the availability of water supply. The 50-MW plant will have a production capacity of up to 22 tonnes per day or 8,000 tonnes per annum of green hydrogen. It will also use Fortescue's own Proton Exchange Membrane (PEM) technology, produced at the company's adjacent Gladstone Electrolyser Manufacturing (GEM) facility. Earlier this year, Industrial Info reported that the company had built its first in-house hydrogen electrolyser at GEM, which will provide 2 gigawatts (GW) when fully operational, capable of producing 200,000 tonnes of green hydrogen per year. For additional information, see May 17, 2023, article - Fortescue Completes Aussie Hydrogen Electrolyser Plant.
The Phoenix Hydrogen Hub is a planned 80-MW electrolyser and liquefaction facility in Arizona with an estimated production capacity of up to 11,000 tonnes per annum of liquid green hydrogen. Total investment will be approximately US$550 million, with first production is expected in 2026. The third project, known as the Christmas Creek Green Iron Trial Commercial Plant, is described as a "green pit-to-product supply chain" and will cost around US$50 million. The goal will be to use existing green hydrogen infrastructure to produce more than 1,500 tonnes of green iron annually from magnetite and hematite ores.
"Diversity in technology and geography at conservative scales for Fortescue projects reflects our disciplined approach to learning while we do, prior to large scale investments," said Fortescue Energy Chief Executive Officer Mark Hutchinson. "The Phoenix Hydrogen Hub establishes Fortescue in one of the most attractive energy markets in the world, facilitated by the Inflation Reduction Act. The proximity to California, a primary heavy haulage trucking route and the most progressive U.S. State to adopt and incentivize clean hydrogen, primes Fortescue well to deliver value into the U.S. domestic market. The Gladstone PEM50 Project in Queensland will produce hydrogen at an industrial scale, allowing us to demonstrate the high quality of Fortescue's own hydrogen systems. With a disciplined approach to capital allocation, we continue to target double-digit project returns. This is the start of a pipeline of green energy projects we are dedicated to delivering."
Fortescue Metals Chief Executive Officer Dino Otranto added: "Fortescue is taking a proactive approach to green iron, including embracing innovative technologies that will help us step away from the use of fossil fuels. We are confident that our approach will drive growth for Fortescue through new, high value products being sold into new markets, ultimately leading to an increase in the number of iron units we sell."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The final investment decisions (FIDs), some through its clean energy arm Fortescue Future Industries (FFI) (East Perth, Australia) include the Gladstone PEM50 green hydrogen project in Queensland, a green iron project in western Australia and a hydrogen hub in Phoenix, Arizona. The company also stated that some other projects will be fast-tracked including one in the Port of Pecem, Brazil, "Project Chui" in Kenya and Holmaneset in Norway.
The Gladstone PEM50 Project, located in Queensland, is a two-stage 50-megawatt (MW) green hydrogen project. Phase One covers the installation of a 30-MW electrolyser plant with construction expected to commence in 2024, with first production of green hydrogen in 2025. The remaining 20 MW capacity will be installed and commissioned in 2028, aligned with the availability of water supply. The 50-MW plant will have a production capacity of up to 22 tonnes per day or 8,000 tonnes per annum of green hydrogen. It will also use Fortescue's own Proton Exchange Membrane (PEM) technology, produced at the company's adjacent Gladstone Electrolyser Manufacturing (GEM) facility. Earlier this year, Industrial Info reported that the company had built its first in-house hydrogen electrolyser at GEM, which will provide 2 gigawatts (GW) when fully operational, capable of producing 200,000 tonnes of green hydrogen per year. For additional information, see May 17, 2023, article - Fortescue Completes Aussie Hydrogen Electrolyser Plant.
The Phoenix Hydrogen Hub is a planned 80-MW electrolyser and liquefaction facility in Arizona with an estimated production capacity of up to 11,000 tonnes per annum of liquid green hydrogen. Total investment will be approximately US$550 million, with first production is expected in 2026. The third project, known as the Christmas Creek Green Iron Trial Commercial Plant, is described as a "green pit-to-product supply chain" and will cost around US$50 million. The goal will be to use existing green hydrogen infrastructure to produce more than 1,500 tonnes of green iron annually from magnetite and hematite ores.
"Diversity in technology and geography at conservative scales for Fortescue projects reflects our disciplined approach to learning while we do, prior to large scale investments," said Fortescue Energy Chief Executive Officer Mark Hutchinson. "The Phoenix Hydrogen Hub establishes Fortescue in one of the most attractive energy markets in the world, facilitated by the Inflation Reduction Act. The proximity to California, a primary heavy haulage trucking route and the most progressive U.S. State to adopt and incentivize clean hydrogen, primes Fortescue well to deliver value into the U.S. domestic market. The Gladstone PEM50 Project in Queensland will produce hydrogen at an industrial scale, allowing us to demonstrate the high quality of Fortescue's own hydrogen systems. With a disciplined approach to capital allocation, we continue to target double-digit project returns. This is the start of a pipeline of green energy projects we are dedicated to delivering."
Fortescue Metals Chief Executive Officer Dino Otranto added: "Fortescue is taking a proactive approach to green iron, including embracing innovative technologies that will help us step away from the use of fossil fuels. We are confident that our approach will drive growth for Fortescue through new, high value products being sold into new markets, ultimately leading to an increase in the number of iron units we sell."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
