Fortescue targets net zero emissions for its customers by 2040

October 5 (Reuters) – Fortescue Metals Group (FMG.AX) on Tuesday announced its goal of achieving net zero emissions by 2040 from the operations of its customers, including crude steelmakers, as it seeks to stimulate the production of hydrogen and green energy to help reduce its carbon footprint.

The steel industry is one of the most polluting industries in the world and the shift to a goal of net zero emissions from the industry’s use of raw materials marks an escalation in efforts to reduce process carbon emissions.

However, customer emissions have been notoriously difficult to quantify, let alone reduce. This is one of the reasons why the biggest rivals of the group BHP (BHP.AX) and Rio Tinto (RIO.AX) have not set net zero targets for the sector. Read more

Fortescue, the world’s fourth-largest iron ore miner, said it would develop projects and technologies focused on reducing emissions from iron and steel manufacturing.

It will also work with potential customers for the supply of green ammonia and hydrogen technology from its Fortescue Future Industries (FFI) unit.

FFI plans to spend between $ 400 million and $ 600 million by June 2022 on developing green trains, trucks and shipping and decarbonization technologies. Read more

The technological development and sourcing of green hydrogen and ammonia through FFI will provide the steel, cement, and land and shipping industries with significant decarbonization opportunities, said Elizabeth Gaines, CEO of Fortescue.

Emissions from Fortescue’s crude steel producing customers represent 98% of its scope 3 emissions.

Reporting by Sameer Manekar in Bengaluru and Melanie Burton in Melbourne; Editing by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles.