Fortescue Metals Group Chairman Andrew Forrest has committed to billions of dollars in the renewable energy sector as it seeks to replicate and ultimately exceed its success in iron ore mining
Dr. Forrest told the company’s annual general meeting Wednesday that the Fortescue team has visited 23 countries and plans to visit 24 more as Fortescue looks to secure assets for renewable energy generation
Speaking from Paraguay via the video link, Dr. Forrest assured shareholders that he will protect Fortescue’s balance sheet while turning Fortescue into a « renewable energy sources » company
Its renewable energy ambitions will see Fortescue become one of the world’s largest energy providers, surpassing the likes of Chevron and Total, with assets dwarfing its iron ore operations
“We have identified the resources that would place us in terms of gigawatts in place with the major energy companies in the world if we developed them fully,” he said
Dr. Forrest said every project will be considered on a merit-based basis as he talked about Fortescue’s ability to provide green hydrogen and green ammonia to the world along with the development of large-scale hydropower, solar and wind projects.
“Where we establish markets, as we did at Fortescue, and where we create autonomous financing secured only against the asset, just as we did with Fortescue, we will go ahead and fund and develop those projects,” he said
Fortescue’s initial goal is to be able to supply 235 gigawatts of energy from renewables, but there is no timeline for reaching the target
“Bear in mind that this first goal of 235 gigawatts of energy will actually make Fortescue one of the largest energy companies in the world but will be financed conservatively and outside of our balance sheet,” Dr. Forest, who owns more than 35 gigawatts per cent of Fortescue Tell other contributors
Fortescue is already committed to investing nearly $ 1 billion in decarbonizing and developing renewable energy sources in mining operations by 2023 and says renewable energy plans in Western Australia could eliminate the need to import 1 billion liters of diesel
Dr. Forrest indicated that the company will provide funding to start renewable energy projects on the ground as it did in iron ore mining before switching to global stock markets.
He said that this approach would pay off in the same way as the risks involved in launching Fortescue’s iron ore operations 17 years ago, and reminded shareholders that the company had raised and paid $ 33 billion ($ 45 billion) in more debt from its trip.
« We may put in additional projects worth billions of dollars, but there are trillions of dollars of capital available, » he said.
“One of our potential partners themselves has more than $ 700 billion in cash in banks and they want to earmark that for renewable industries”
The richest Australian man has been abroad since September and he may not return home in Perth until next year as he works from a new base in Croatia
Dr. Forrest said carbon neutrality must be achieved as quickly as possible for the benefit of the planet and for the benefit of future generations.
He said Fortescue will lead resource companies’ scramble to renew renewable energy sources and move away from fossil fuels by cutting costs
“I believe that resources can now lead, I believe, to a future of clean energy and this is the future of clean energy, ladies and gentlemen – fellow shareholders – to which I am committed to your company.”
Fortescue plans to be present in South America, Europe and other continents as part of its renewable energy business focusing on alternatives to hydrogen, hydrogen, solar and wind energy to fossil fuels
He said assets will be owned and managed by Fortescue and that Fortescue will not engage with countries where there is evidence of modern slavery
Dr. Forrest’s presentation to contributors included a video package of a young girl preparing for forced marriage and other examples of modern slavery that the Forest Mendero Foundation is striving to eliminate
Dr. Forrest signed a hydropower agreement with the Democratic Republic of the Congo in late September as he is touring some of the world’s most dangerous countries in search of investment and philanthropic opportunities
On behalf of Fortescue Future Industries, Dr. Forrest is known to have signed similar agreements or held talks with heads of government in Ethiopia, Papua New Guinea, Indonesia and Afghanistan
Fortescue CEO Elizabeth Gaines, speaking after concluding Wednesday’s meeting, said the company had set ambitious targets in the field of renewables and was in the early stages of evaluating opportunities.
“As the president mentioned any decision, and we have not made any capital investment decisions in this initiative at the present time, it will be supported by detailed feasibility studies and all the rigor and discipline for which Fortescue is famous in developing major projects.”
Ms Gaines said Fortescue had a « plethora of opportunities » and there were a lot of financing options available in the clean energy space
When asked about the strained trade relationship between Australia and China, Ms. Gaines said, « It is very important that Australia and the Australian government understand the importance of that trade. It is fundamental to Australian prosperity. »
Ms. Gaines indicated that Australian iron ore demand has been strong with China as it is on track to achieve record crude steel production this year, and further growth has been recorded in 2021
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The Fortescue Metals Group, Renewable Energy, Andrew Forrest
World News – AU – Forrest Unveils Amazing Vision for Fortescue in Renewables
