We accept the scientific consensus as assessed by the Intergovernmental Panel on Climate Change (IPCC) and are taking steps to realise the Paris Agreement goal of limiting global temperature rise to well below 2°C above pre-industrial levels.
Fortescue is transitioning to a global green energy and resources company by:
Scope 1 and 2 emissions
We recognise the urgency needed to reduce emissions during this critical decade and despite our continued growth and expansion, we will reduce our net operational emissions from our FY20 baseline by at least three per cent annually and achieve carbon neutrality by 2030.
The first half of the decade will see emission reductions achieved predominantly through the increased use of renewable energy to power our sites. We will use offsets to address residual emissions where economically viable decarbonisation opportunities and technologies are unavailable. Their use will be consistent with the mitigation hierarchy to avoid, reduce and offset emissions.
Where the technology required to decarbonise our mining fleet is not readily available, we are making significant investments in research and development and partnering with others to develop the technology needed to advance in these areas. Fortescue publishes details of its Scope 1 and Scope 2 emissions in its annual Climate Change Reports.
Scope 3 emissions
Scope 3 emissions are those emissions that fall within a company’s value chain but are outside its operational control. Our approach to reducing Scope 3 emissions is to develop projects and technologies with a focus on reducing emissions from iron and steel making and to work with current and prospective customers on the application of the technology and the supply of green hydrogen and ammonia from FFI.
Fortescue will also prioritise the decarbonisation of its own fleet of eight ore carriers and engage with shipping partners to reduce, and eventually eliminate, emissions from shipping.
Key elements of our decarbonisation pathway include:
We have also established a Sustainability Financing Framework which will enable us to raise Green and Social debt to fund our decarbonisation initiatives.
Fortescue’s Chichester Hub operations are now being powered by solar energy following the completion of the 60-megawatt Alinta Energy Chichester Solar Gas Hybrid Project.
The solar farm will power up to 100 per cent of daytime operations at Fortescue’s Christmas Creek and Cloudbreak sites, displacing around 100 million litres of diesel every year. The remaining power requirements will be met through battery storage and gas generation at Alinta Energy’s Newman Power Station.
We have committed and invested over US$700 million in renewable energy initiatives into the Pilbara Energy Connect project (PEC), which consists of:
PEC integrates Fortescue’s stationary energy facilities in the Pilbara into an efficient, secure and resilient network. It reduces emissions and provides the basis to integrate additional renewable generation necessary to decarbonise our operations.
Decarbonising the mining fleet is one of the biggest challenges facing our industry. While electric light vehicles are readily available for the passenger and domestic market, there are currently no large-scale economic or technologically viable vehicles available for our haulage operations.
Fortescue Future Industries’ (FFI) Green Team are successfully trialling hydrogen, ammonia and battery technology to power trains, ship engines, haul trucks and drill rigs into the future.
Working closely with Williams Advanced Engineering (WAE), we have commenced development of a regenerating battery electric iron ore train (Infinity Train) to support the delivery of Fortescue’s industry-leading decarbonisation targets. In a world first development, the Infinity Train will utilise the gravitational energy generated on the downhill loaded sections of Fortescue’s rail network to recharge its battery electric systems, without any additional charging requirements for the return trip to reload.
This builds on work already underway to decarbonise our locomotive fleet, following the purchase of two new Battery Electric Locomotives to transport iron ore to our port facilities. We are expected to take delivery of our first battery-powered locomotive in 2023.
Fortescue established its green energy, technology and development company Fortescue Future Industries (FFI) to lead the green industrial revolution, developing technology solutions for hard-to-decarbonise industries, while building a global portfolio of renewable green hydrogen and green ammonia projects.
FFI’s vision is to supply over 15 million tonnes of green hydrogen annually by 2030. Fortescue will be a source of demand for FFI products, given its target to achieve carbon neutrality by 2030.
In 2022, Fortescue acquired Williams Advanced Engineering (WAE), setting the pace for ground-breaking innovation in the green energy space.
WAE, is a world-leading technology and engineering business renowned for its ground-breaking projects in high performance battery systems and electrification. The acquisition of WAE brings together leading thinkers and engineers under one brand to drive progress and combat climate change.
Fortescue has worked with WAE since early 2021 to design and build a prototype battery system to power an electric mining haul truck.
Together, Fortescue and WAE will:
One of the first major projects to be developed will be a world leading battery electric train concept, called the Infinity Train.
The full ASX announcement is available here.