A truck carrying iron ore moves along a road at the Fortescue Metals Group (FMG) Christmas Creek iron ore mine located south of Port Hedland in the Pilbara region of Western Australia, November 17, 2015. REUTERS/Jim Regan/File Photo
Oct 5 (Reuters) – Fortescue Metals Group (FMG.AX) laid out its aim on Tuesday to achieve net zero emissions by 2040 from the operations of its customers including crude steel manufacturers, as it looks to boost hydrogen and green energy production to help curtail its carbon footprint.
Steelmaking is one of the world’s most heavily polluting industries and the shift to focus on net zero emissions from the use of raw materials by the sector marks an escalation in efforts to cut carbon out of processes.
However, customer emissions have been notoriously hard to quantify, much less reduce. This is one reason that bigger rivals BHP Group (BHP.AX) and Rio Tinto (RIO.AX) have not set outright net zero targets for the sector. read more
Fortescue, the world’s fourth-biggest iron ore miner, said it will develop projects and technologies that focus on cutting down emissions from iron and steelmaking.
It will also work with potential customers for supply of green ammonia and hydrogen technology from its unit Fortescue Future Industries (FFI).
FFI expects to spend between $400 million and $600 million in the year to June 2022 on developing green trains, trucks and shipping and decarbonisation technologies. read more
Technology development and green hydrogen and ammonia supply through FFI will provide significant opportunities for the steel, cement and land and sea transport industries to decarbonise, Fortescue Chief Executive Officer Elizabeth Gaines said.
Emissions from Fortescue’s crude steel-making customers account for 98% of its scope 3 emissions.
Reporting by Sameer Manekar in Bengaluru and Melanie Burton in Melbourne; Editing by Subhranshu Sahu
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