Fortescue acquires Williams Advanced Engineering for $309m as it races towards net-zero goal

Fortescue has paid a big price to acquire the battery technology offshoot of the Williams F1 team that it says will be a crucial plank in the company’s 2030 climate goals.

Global green renewables and resources company Fortescue will acquire Williams Advanced Engineering in its race to net zero. Picture: Getty Images

Iron ore miner Fortescue is buying Formula 1 racing-linked technology outfit Williams Advanced Engineering for $309m, in a deal founder and chairman Andrew ‘Twiggy’ Forrest says will help the company ramp up its decarbonisation efforts as it races towards becoming the world’s largest clean energy group.

The acquisition, worth £164 million ($309.41m), will see WAE work with the miner’s Fortescue Future Industries (FFI) division on major projects including a battery electric train concept and a prototype battery system to power electric mining haul trucks, as well as new green technology and engineering ventures.

Dr Forrest, Australia’s richest man, said the tie-up represented a crucial step towards Fortescue’s stated goal of net-zero emissions by 2030. WAE, an offshoot of the Williams F1 team, provides batteries for Formula E world championship cars. Fortescue will buy the company from Williams Grand Prix Engineering and private equity outfit EMK Capital, which bought a majority stake from Dorilton Capital in 2021.

“This is a major milestone in the future of our company as we welcome WAE to the Fortescue family,” Dr Forrest said.

“FFI and WAE will work together to decarbonise Fortescue – and in turn the global heavy industry and hard to abate sectors – for the good of our planet, and the benefit of our shareholders.

“Today’s announcement builds on our commitment to remove fossil fuel powered machinery from our operations and to replace it with zero carbon emission technology, powered by FFI green electricity, green hydrogen and green ammonia.

“For decades, Sir Frank Williams’ F1 racing business was at the forefront of innovation in engineering and I thank him for his pioneering vision in founding WAE over a decade ago. I was sorry to hear of his passing last year and I pay tribute to him. I have huge respect for him, his family and the Williams’ business.”

Forrest says the acquisition is a major milestone for the company. Picture: NCA NewsWire / David Swift

WAE chief executive officer Craig Wilson said his company would play a key role in Fortescue’s decarbonisation strategy.

“This acquisition and investment will facilitate the company’s further growth to support the delivery of zero emission products and services across existing sectors – such as automotive, motorsport and off-highway – and new sectors too,” he said.

The acquisition is the latest in a recent string of buys for Fortescue, and chief executive officer Elizabeth Gaines said Fortescue and WAE share strong cultural alignment and a focus on technology.

“We look forward to working together to apply this technology-first strategy to our emissions reduction pathway while also empowering the highly capable WAE team to achieve growth opportunities in new products, services and markets,” she said.

“The potential global market for WAE is significant and will extend beyond the decarbonisation of Fortescue, further demonstrating our commitment to the diversification of Fortescue to a renewable energy and resources company.”

The transaction is expected to close by March 2022.

Mr Forrest has previously said it would cost “hundreds of billions of dollars” to make Fortescue’s ambitions of becoming a global green energy powerhouse a reality.

Fortescue has also flagged plans to issue green bonds to fund plans to decarbonise its own operations and build the massive pipeline of renewable energy projects earmarked through FFI.

Originally published as Fortescue acquires Williams Advanced Engineering for $309m as it races towards net-zero goal