Hi
@MichaelirishThere is no doubt that Fortescue is now a globally recognised brand and that Forrest is a globally connected and effective ambassador.
Fresh from a summit with the US President, Forrest correctly challenged Musk for the presently virtue signalling Tesla’s that refuel on fossil fuel generated electricity. The Clash of Eco Titans article spread globally within minutes to hours …
Fossil fuels have driven 200 yrs of industrialisation … energy dense … easily transportable … versatile inputs to electricity production, transport, efficient agricultural production, fertilisers , pharmaceuticals, plastics, clothing fibres and so on … but there has been a cost.
Elon Musk is selling a product that accelerates the need for electricity at a time when aging fossil fuelled generation assets are being decommissioned. Arguably, Musk is accelerating the need for a viable energy alternative. In the absence of a successful transition to renewable energy, Musk’s Tesla efforts will worsen climate change abatement efforts.
There are compelling reasons why Musk and Forrest should work together to develop scalable, renewable, versatile alternatives to fossil fuels and I expect that penny may drop sooner than later with Musk.
I don’t see small hydrogen combustion fuelled cars challenging Musk’s EV cars, rather I see EVs being recharged with green hydrogen generated electricity.
Wind and solar over-production directed to hydrogen production is energy storage on a commercial and readily transported scale … the two main underlying tenets driving reluctance to transition from fossil fuels.
Green hydrogen is part of the energy storage solution, along with pumped hydro, and even smart gridding able to utilise a portion of energy stored within millions of EVs during peak periods by commercial agreement with owners. Green hydrogen is exportable, and Fortescue have already contracted to supply millions of tons of it into Europe over the coming decade.
If industry and government really get behind green hydrogen, clean, heavy industry and manufacture could have a renaissance around Australia … this syncs well in a post globalisation world when jobs are being on-shored and for national security we need to be more energy and product self sufficient.
Fortescue will not miss the opportunity to deliver the opportunity that Forrest has recognised. Imo, Fortescue management, vision, growing expertise and commitment to a low carbon future is globally recognised. There will be no shortage of global partnering opportunities for Fortescue imo. At some point, Fortescue will be valued on a higher earnings multiple for its commercial, green credentials.
The recent execution plan commits to funding not exceeding 10% of iron ore profits … that seems a great balance of risk to potential reward … and a legitimate way for investors to support transition to renewables and a lower carbon future.
Dex
(20min delay)