An impressive solid consistent FY24 result.
Few things that I wanted to highlight...
* The Board have agreed to fast-track two more projects, approving Early Investment Decisions to develop the front end engineering designs and approvals for their next green energy projects. Holmaneset project in Norway, which has received backing and funding by the European Union, and their Pecém Green Hydrogen Project in Brazil. These projects are progressing well towards FID. They also have prospective projects in Oman, Morocco, Jordan and Egypt those will follow next. Fortescue have stated, that their financial discipline always comes first, they will never make investments that are not economically viable.
* The company have stated numerous times now, that where green power prices aren’t where they need to be, they will work in partnership with industry and government to drive prices down to enable green industry. In Australia, take note, the Hydrogen Production Tax Credit will be crucial to getting their and others green hydrogen projects off the ground as quickly as possible. I don't know what Nolan is talking about re Fortescue's green hydrogen projects.
* In the Annual Report, Fortescue also mentioned that they were currently investigating opportunities to sell excess renewable energy to support others reducing their emissions. They're not leaving any stone unturned.
* Fortescue have fully commissioned Australia’s largest gas and liquid hydrogen plant at their Christmas Creek mine, which is now being used to refuel a fleet of fuel cell hydrogen-powered coaches and their zero emissions prototypes.
* Testing continues with their Roadrunner and Europa heavy haul trucks, so we should hear more on this front.
* What was also mentioned in the Annual Report was that they now have not one but three electric excavators operating across their sites which are powered by a 6.6kV substation and more than two kilometres of high voltage trailing cable.
* Another milestone, was what took place this year on their aerodrome at Cloudbreak. A first in Australia to have a fully operational, solar powered airfield lighting system. What this will mean is that the changeout of the 120 airfield lights to solar will result in a 20 per cent reduction in power generation and diesel usage at their airstrip.
* Their intention has always been to decarbonise Fortescue first and now they're working hard to sell the same solutions and products to other heavy industry players (Liebherr/Fortescue).
* The company have commenced commissioning of their 100 megawatt solar farm at North Star Junction near Iron Bridge.
* More than one gigawatt of solar infrastructure will be built before the end of the decade.
* This is what caught my attention..Dino highlighted
"Right now, we are on the brink of a transformative moment in the history of industry – the rise of green metal". Their intention is clear, they intend to pivot to green metal. They're rethinking what the entire iron and steel value chain is going to look like. And what's their intention? To produce high purity green metal that will be suitable for use in almost any steel plant globally.
* Potential Fortescue-China export of green metal to China. They are taking a strong focus with this. Their plan could eliminate more than 200 million tonnes (Mt) per year from their Scope 3 emissions. This is what/where my attention is on - an Australia-China green metal supply chain. Should this come to fruition, Fortescue will become one of the world’s largest consumers of green hydrogen. Just let that sink in folks.
* Their Christmas Creek Green Metal Project is going to be crucial in proving that what they are working on can be achieved at scale. First target, 1500t of a higher than 95 per cent green metal with first production anticipated next calendar year.
Projects - Value accretive projects to FID (supported by funding solution).
5 projects partially achieved - Arizona Hydrogen and PEM50 projects went to FID in FY24.
Commercialisation - Products sold to new customers across Fortescue Zero and Hydrogen Production Systems.
5 products achieved - In total seven products were sold to new customers in FY24.
Fortescue Energy - Disappointing performance after a year. In fairness, their newer products have only recently come online, so looks like the flow on effect will be from FY25 onwards. They're keeping their costs in check at least. Look at the screenshots I've taken below and the products they're selling on the market already.
Total Fortescue Energy EBITDA was a US$659 million loss in FY24 in FY23 it was an EBITDA loss of US$617 million.
US$91m in revenue compared to US$107m in FY23.
and
Reference:
https://cdn.fortescue.com/docs/default-source/announcements-and-reports/fy24-annual-report.pdf?sfvrsn=f9fd3e3b_9Tony
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