ARKANSAS, Nov 21 (Future Headlines)- Australia’s Fortescue has given the green light to an estimated total investment of about $750 million over the next three years for two green energy projects and one green steel project. The move is part of Fortescue’s strategic goal to become a leading clean energy producer. The approved investments include projects in the U.S., Australia, and Western Australia.

U.S. Hydrogen Hub (Phoenix, Arizona):

Investment: Approximately $550 million.

Focus: Development of an electrolyser and liquefaction facility.

Timeline: Targeting the first production of liquid green hydrogen in 2026.

Gladstone 50 MW Green Hydrogen Project (Queensland, Australia):

Investment: Part of the overall $750 million investment.

Focus: Green hydrogen project with a capacity of 50 megawatts.

Christmas Creek Green Iron Trial Commercial Plant (Western Australia):

Investment: Part of the overall $750 million investment.

Focus: Commercial plant for green iron production.

Location: Western Australia.

Fortescue is fast-tracking projects in Brazil, Kenya, and Norway as part of its global expansion strategy. The company is looking to strengthen its presence in the U.S., evident from recent announcements about setting up an advanced manufacturing center in Michigan and establishing Fortescue Capital in New York to attract more investment to its green energy initiatives.

In August, Fortescue announced a strategic shift in its green energy business by discontinuing the practice of allocating 10% of its net profit to the unit. Projects and investments within the green energy sector will now compete for capital allocation, with the company expecting outside investors to contribute additional funds. Fortescue aims to hold stakes ranging from 25% to 50% in projects, collaborating with external investors.

Fortescue shares were up 1% on the day of the announcement, amid a positive market for iron ore miners. Peers in the industry, including BHP and Rio Tinto, also experienced gains, with BHP up 1.5% and Rio Tinto up 2%.

During the annual general meeting, shareholders voted against a remuneration resolution. The vote was influenced by concerns over special payments to retiring executives, deemed inconsistent with industry practices.

Fortescue’s approval of a substantial investment in green energy and steel projects reflects the company’s commitment to transitioning into a major clean energy producer. The diverse projects, spanning hydrogen production and green steel, demonstrate Fortescue’s strategic focus on multiple fronts in the renewable energy sector. The global expansion, especially in the U.S., and the shift in the capital allocation approach underline Fortescue’s ambition to attract external investments and foster collaborative ventures. While the positive market response indicates investor confidence, Fortescue will navigate challenges in aligning with industry practices to address shareholder concerns and ensure sustained growth in its green energy endeavors.

Reporting by Kevin Wood; Editing by Sarah White