Fortescue launches green energy accelerator platform: Fortescue Capital

Fortescue has today announced the formation of Fortescue Capital, headquartered in New York City, and named Robert Tichio as Chief Executive Officer (CEO) and Managing Partner.

Fortescue Capital is a new green energy investment accelerator platform, and an integral next step in Fortescue’s commitment to deliver green energy projects and decarbonisation investments.

The platform is tasked with delivering greater returns for shareholders, building on Fortescue’s stellar reputation for generating the highest total shareholder returns of any company listed on the ASX since its inception, and having paid over A$35 billion in dividends to shareholders since 2011.

Fortescue Energy CEO, Mark Hutchinson, said “Fortescue is taking its global pipeline of green hydrogen and green ammonia projects to Final Investment Decision, and in doing so has communicated our intention and desire to bring additional equity investors onboard. Further, Fortescue has previously communicated its planned investment to decarbonise its Pilbara operations, and we see Fortescue Capital as an essential tool of engagement as we embark on both missions.”

“We could not be more excited to welcome Robert Tichio to the Fortescue family. He brings with him decades of invaluable experience and will lead a team with deep experience and broad expertise in capital formation and investment management in the energy industry.”

Before joining Fortescue, Mr Tichio spent over 17 years at Riverstone Holdings, a New York based private equity firm, that has seen total capital raised across a variety of private equity and related products exceed US$42 billion.

Mr. Tichio will be joined by a senior leadership team with a global background across sustainable infrastructure, climate technology, energy and private markets, which includes Nathan Craig, Rael McNally and Jennifer Zarrilli. Each will serve as Managing Directors and be based in New York.

Fortescue Capital CEO, Robert Tichio, said “Fortescue has demonstrated unmatched leadership in calling for capital formation to support large scale, industrial solutions that can provide durable and high-impact decarbonisation pathways for difficult-to-decarbonise emitting categories.

“I am thrilled to join the talented and passionate team at Fortescue to bring these projects to a global set of institutional investors.”

Mr Tichio reports to Mark Hutchinson, CEO of Fortescue Energy, and the Operating Board of Fortescue Capital, which will initially include Robert Tichio, Jean Baderschneider, Mark Hutchinson and Mark Barnaba.

Fortescue Capital is being developed as a fiduciary for third-party capital, which will complement the Energy and Metals internal corporate finance teams that already exist and work collaboratively to serve the shareholders of Fortescue.

Funding models will differ on a project-by-project basis as projects are formally approved by the Fortescue Board. The Company expects to hold equity stakes between 25 per cent and 50 per cent in each project, with third-party investors.

These potential capital partners include sovereign wealth funds, pension funds, endowments, insurance companies and ultra-high net worth family offices.