Industry leading approach to climate change
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 terrestrial emissions (scope 1 and 2) across our iron ore operations by 2030
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.
Net zero Scope 3 emissions by 2040
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:
- By 2030, enable a reduction in emissions intensity from steelmaking by Fortescue's customers of 7.5%, from FY21 levels
- By 2030, enable a reduction in emissions intensity levels from the shipping of our iron ore by 50%, from FY21 levels
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.
Fortescue publishes details of its Scope 3 emissions in its annual FY23 Climate Change Report. Details of the methodology used to estimate Scope 3 emissions can be found here.
Decarbonisation strategy
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.
Green power
We are making significant investments in renewable power, battery storage, and transmission links to displace stationary diesel and gas-fired power generation at our sites.
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:
- The 223km high voltage transmission line linking our Solomon Hub with Iron Bridge and Port Hedland, effectively eliminating the need for diesel-fired power generation at Iron Bridge
- Installing a 16MW battery at our Solomon Power Station and a 26MW battery at Iron Bridge to provide network support and power stability
- Connecting the Herb Elliott Port to the PEC to operate on renewable power, reducing almost all of our Scope 2 emissions once implemented
- Receiving renewable power from Alinta Energy via the Chichester Solar Gas Hybrid project. During FY22, this reduced diesel usage by approximately 80 million litres.
Green mobility
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:
- Acquiring Williams Advanced Engineering (WAE), whose critical technology and expertise in high performance battery systems and electrification expands our capacity to undertake research and develop and commercialise innovative low carbon solutions
- Developing the Infinity Train, the world’s first regenerating battery electric iron ore train, which uses gravitational energy to recharge its battery electric systems without any additional charging requirements on the mainline for the return trip
- Partnering with Liebherr to develop and supply zero emissions, battery electric haul trucks, with the first production truck being operational at our mine sites by 2025
Maximising opportunities
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.
Engagement and collaboration
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.
Our partners
Liebherr
Partnership with Liebherr to supply green mining haul trucks incorporating Fortescue's proprietary-owned zero emission power.
Incitec Pivot
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.
CSIRO
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.
Fortescue is the future
Being a good global citizen is not separate to our national economic interest. It’s key to it. By 2030, we’ll still be exporting energy… and employing thousands of Australians as we do so: but we’ll be exporting renewable energy via submarine cables and green hydrogen.
Dr Andrew Forrest AO
Executive Chairman
