Fortescue's Executive Threatens Business Exit Over US Hydrogen Policy
Key Ideas
- Fortescue may relocate business from the US if hydrogen policy is unfavorable, focusing on other regions like North Africa and Europe.
- The company is considering pausing green hydrogen projects in the US and Australia, including the 80-megawatt hydrogen hub in Arizona.
- Fortescue Energy is also working on developing an Advanced Manufacturing Center in Detroit, Michigan, to produce batteries, fast chargers, and electrolysers.
- The executive chairman advocates for economic drivers in the adoption of green hydrogen, pushing for a carbon levy to promote green ammonia production.
In a recent statement at a sustainability event in London, Fortescue's executive chairman, Andrew Forrest, expressed concerns regarding the potential impact of US hydrogen policy on the company's operations. Forrest emphasized that if the policy direction in the US regarding hydrogen does not align with the company's vision, they would reconsider their investments in North America. The executive highlighted the inevitability of hydrogen development and the company's readiness to divert investments to regions like North Africa and Europe, where they possess the necessary technologies to produce affordable hydrogen.
Fortescue Energy, the green energy arm of Fortescue, is evaluating the progress of its green hydrogen initiatives in both the US and Australia, including the 80-megawatt hydrogen hub project in Arizona. Additionally, the company is advancing its plans for the Advanced Manufacturing Center in Detroit, Michigan, aimed at manufacturing key components for the renewable energy sector.
Andrew Forrest's stance on the economic benefits of green hydrogen underscores the company's commitment to sustainable practices. He advocates for leveraging economic incentives, such as a carbon levy proposed for green ammonia production by the International Maritime Organization, to drive the adoption of green hydrogen technologies. Fortescue's strategic positioning and investments in green energy projects reflect its dedication to advancing sustainability in the mining and energy sectors.