Australian mining giant Fortescue has given the green light to a substantial investment of approximately $750 million over the next three years, signaling its commitment to becoming a leading clean energy producer. The approved projects include a 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.
A significant portion of the investment, around $550 million, will be directed towards establishing an electrolyser and liquefaction facility in Phoenix. The ambitious target is to achieve the first production of liquid green hydrogen by 2026.
Fortescue, the world's fourth-largest iron ore producer, is expanding its focus on renewable energy through its Fortescue Energy unit. In addition to the green energy projects in the U.S. and Australia, the company has decided to accelerate initiatives in Brazil, Kenya, and Norway as part of its broader global strategy.
Recent announcements of an advanced manufacturing center in Michigan and the establishment of Fortescue Capital in New York underscore the company's intensified efforts to penetrate U.S. markets and attract further investment to its green energy ventures.
In a shift in strategy unveiled in August, Fortescue discontinued the practice of allocating 10% of its net profit to its green energy unit. Instead, projects and investments within the unit will compete for capital allocation, with external investors expected to contribute additional funds. Fortescue anticipates holding stakes ranging from 25% to 50% in these projects in collaboration with outside investors.