Fortescue's US$6.2 billion decarbonisation plan: * To eliminate...

Fortescue's US$6.2 billion decarbonisation plan:

* To eliminate the use of fossil fuels from their iron ore operations which currently accounts for 89 per cent of Scope 1 and Scope 2 emissions.

* The majority of Fortescue's emissions are currently generated from their Pilbara iron ore operations, accounting for more than 99 per cent of their Scope 1 and 2 emissions.

* Spend to begin this Financial Year 2024 through to FY 2028.

* Maximum spend per year = US$1.5bn. US$500m guidance this FY.

The company is undoubtably working to offset that Capex outside of the metals group imv. How so?

1. Through the commercialisation of the technologies required to decarbonise their operations and create green hydrogen and green ammonia, solutions that can be applied to decarbonisation of hard-to-abate sectors such as shipping and iron and steel production. These might take a bit more time.

2. They're establishing the building blocks across...

a) technology ownership;
b) manufacturing capability and
c) green energy generation and distribution to deliver across the entire value chain and accelerate their climate transition.

3. Through WAE (Liebherr partnership) they are looking to commercialise their high performance battery systems and electrification, innovative green low-carbon solutions for battery storage and for zero emission heavy haulage.

4. Fortescue Hydrogen Production Systems facilitates the technological development and manufacture of electrolysers and other hydrogen production technologies, both for commercial application and internal use in decarbonising their operations to Fortescue.

5. A number of Fortescue Energy's plans are progressing and a few action items highlighted in their Annual Report are included within the scope of Fortescue Metals operations and they are starting to be ticked off, reflecting a dual commercial and internal purpose.

Larger picture folks.

Tony