General Discussions, page-4039

FMG building battery powered locos

Fortescue Metals Group (ASX:FMG) among others to announce large carbon emissions reduction plans, alter their portfolios to reduce fossil fuel exposure and seek out high grade sources of iron ore suited to lower emissions steelmaking.

FMG has taken on the task with the most gusto, with its chairman Andrew Forrest quickly becoming the unofficial spokesperson for Australia’s green hydrogen industry.

The company has bold plans to become a producer of 15Mtpa of renewable hydrogen for heavy industries including its own operations by 2030, the same year it plans to hit carbon neutrality from its iron ore mines.

While Twiggy has thrown in with hydrogen, FMG’s Fortescue Future Industries arm — funded with a 10% share of the iron ore miner’s profits — is focusing on battery electric technologies as well.

The business said today two 8-axle battery electric locos with an energy capacity of 14.5MWh will be delivered will be constructed by Caterpillar’s Progress Rail in Sete Lagoas, Brazil.

The first delivery of the locos, which will transport its iron ore to port in the Pilbara, is expected in 2023 (which is, FYI, next year).

“The purchase of these new battery powered locomotives marks an important milestone in the decarbonisation of Fortescue’s locomotive fleet and demonstrates our commitment to achieving carbon neutrality for Scope 1 and 2 emissions by 2030, as we diversify from a pure play iron ore producer to a green renewables and resources company,” outgoing FMG boss Elizabeth Gaines said.

“The new locomotives will cut our emissions while also reducing our fuel costs and our overall operational expense through lower maintenance spend.

“The acquisition builds on the work being carried out by Fortescue Future Industries’ Green Team in Hazelmere to deliver locomotives operating solely on green ammonia and other green renewable fuels and technologies.”

Rio Tinto has committed to spend US$7.5 billion by 2030 to reduce its Scope 1 and 2 greenhouse gas emissions by 50%, including plans to install as much as 1GW of renewable capacity at its iron ore operations in the Pilbara.

BHP, meanwhile, has focused heavily on its nickel and copper businesses, two metals used heavily in electric vehicle production, and has been trialling Toyota EVs at its Nickel West operations