We’re unlike any other heavy industry player, with a costed plan to decarbonise our Scope 1 and 2 emissions across our terrestrial Australian iron ore operations, while developing projects and technology to help scale green energy and green hydrogen globally.
Real Zero means no fossil fuels, and where possible, no offsets. Offsets must only be used as a temporary solution while the technology or innovation required to completely eliminate fossil fuels is developed.
We plan to invest US$6.2 billion in capital to realise this aim by 2030 across all our terrestrial iron ore operations. In addition to being the immediate action that is needed to help address climate change, this investment is also expected to generate economic returns by eliminating our need for diesel, natural gas and carbon offset purchases.
In FY23, Fortescue committed to having the targets verified through the Science Based Targets Initiative (SBTi) to confirm and audit our emissions reductions. We will continue to reduce our net operational emissions from our FY20 baseline by at least 3 per cent annually as we work toward our Real Zero goal. Fortescue publishes its Scope 1 and Scope 2 emissions in its annual Climate Change Report.
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 Fortescue.
We have set the following Scope 3 targets:
Fortescue is working hard to decarbonise its fleet of eight ore carriers via green ammonia and engaging with the shipping industry to reduce, and eventually eliminate, emissions from shipping.
Our targets align with a 1.50C trajectory as we work towards achieving net zero one decade prior to 2050.
Through our decarbonisation strategy, Fortescue alone will prevent ̴ 3mt of CO2 equivalent emissions per year from 2030. This is an estimated consolidated saving of ̴ 10mt CO2-e by 2030. We aim to achieve this through our decarbonisation roadmap for Scope 1 and 2 emissions.
We are delivering our US$700 million Pilbara Energy Connect project, which will integrate the stationary energy facilities across our remote sites in the Pilbara into an efficient, secure and resilient network, enabling us to reduce emissions and incorporate the additional renewable generation necessary to help decarbonise our operations. This includes:
There are currently no large scale economic or technologically viable vehicles available to decarbonise our mobility activities. We have progressed developing innovative low carbon solutions that will enable us to decarbonise our own operations through:
We're leading the green industrial revolution by developing technology solutions for hard-to-decarbonise industries, while building a global portfolio of renewable green hydrogen and green ammonia projects.
Collaboration and engagement with our stakeholders is critical if we are to succeed in accelerating our transition to an integrated, renewable energy and green products company.
Partnership with Liebherr to supply green mining haul trucks incorporating Fortescue's proprietary-owned zero emission power.
We are working to convert Incitec Pivot’s existing ammonia production facility at Gibson Island to produce green ammonia from renewable energy with studies progressing on this project.
We are working with our research and development partner CSIRO to design and test ships that use green ammonia engines. In addition, FFI has joined forces with world leading aeronautics manufacturer Airbus and US-based start-up Universal Hydrogen to develop green hydrogen fuelled aircraft by 2035.
Being a good global citizen is not separate to our national economic interest. It’s key to it. We sit at the tipping point of global warming and global mindsets - one that will see decarbonisation shift abruptly from a 'nice to have' to essential to our existence.
Dr Andrew Forrest AO