Fortescue Metals ramps up green push with new zero net emissions target
Fortescue has pulled forward plans for producing net-zero carbon emissions by at least a decade, but excluded its most energy-intensive project.
Fortescue Metals Group has pulled forward its plans to cut its move to producing net-zero carbon emissions by at least a decade, saying on Tuesday it plans to now reach the target by 2040, but has excluded its most energy-intensive project from its near-term plans.
Fortescue had previously said it expected to be a net-zero carbon emitter by “the second half of the century”, but said on Tuesday it now expects to achieve the milestone within 20 years.
The company also toughened up its near-term emission targets, saying it wants to reduce its scope 1 and 2 carbon emissions — those directly attributable to its own operations and those of its power providers and major suppliers — by 26 per cent (from 2020 levels) by 2030.
But the new near-term targets only apply to its traditional Pilbara iron ore mines, and do not yet include carbon emission reduction goals for its energy-hungry Iron Bridge magnetite mine.
Under Fortescue’s original plans, Iron Bridge — which will extract an iron ore concentrate from finely ground ore using high-powered magnets — was to be powered by a dedicated 120MW gas-fired power plant, and emit about 455,000 tonnes of carbon dioxide equivalent greenhouse gases a year, or about 1 per cent of WA’s entire greenhouse emissions in 2010 terms.
That will be substantially less now Fortescue has firmed up plans to connect the mine to its under-construction Pilbara energy network, partly powered by renewable sources.
But the company still excluded Iron Bridge from its 2030 targets, saying it will establish separate goals for the mine “that align with Fortescue’s goal to achieve net zero operational emissions by 2040” when it becomes operational in mid-2022.
Fortescue had previously only said it “supports Australia’s commitment to reduce emissions by 26-28 per cent from 2005 levels by 2030”.
It had also set minor goals, to be achieved by the end of this financial year, to achieve a 25 per cent decrease in emissions intensity in electricity generation from 2014-15 levels, and achieve a 5 per cent decrease in emissions intensity in energy consumption in the production process from 2016-17 levels.
Like Rio Tinto, however, Fortescue is yet to fall in line with BHP, Vale and other major miners and commit to a timeframe for setting so-called scope 3 goals — those that relate to the use of its products by customers.
Fortescue chief executive Elizabeth Gaines said the company was “focused on addressing the emissions within our control and the revised targets for Scope 1 and 2 emissions are a clear demonstration of that”.
“Fortescue supports the United Nations Framework Convention on Climate Change which mandates that individual nations take responsibility for emissions within their own borders. We will continue to actively engage with our customers and suppliers to encourage and facilitate the reduction of emissions in its value chain,” she said.
Ms Gaines said Fortescue’s new goals were a “stretch target” on the back of the company’s $US800m ($1.16bn) worth of energy infrastructure investment that will see Fortescue install 60MW of solar generation, with Alinta Energy, and connect its network of Pilbara mines with transmission lines to reduce its reliance on diesel-fired power and shift to a renewable and gas generation mix as a transition measure.
“The Chichester Solar Gas Hybrid Project, announced with Alinta Energy in October 2019, is well advanced for the installation of 60MW of solar generation. More recently, Fortescue announced the $US700m investment in the Pilbara Energy Connect program which, together with the Chichester SolarGas Hybrid Project, will deliver 25-30 per cent of our stationary energy requirements from solar power,” she said.
Fortescue shares closed up 58c, or 4.1 per cent to $14.88 on Tuesday, in line with the broader market’s rise.
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