Ann: Management and Organisational Update, page-17

Hi Mah,

Let's not fall into the trap that 90% of the market usually falls into

You wrote;

I understand that the focus has changed , but it seems that hydrogen is dead for the time being !

I don't think it's dead, far from it. I think the company is being very disciplined in choosing what projects to proceed with that has the cheapest form of electricity in order for the projects to be viable. Having said that however, I don't see green hydrogen projects proceeding unless we see a halving of power prices. Governments need to come to the table here. Remember the Australian budget has in its kitty $6.7 billion in tax incentives for green hydrogen production. Let's see what takes place there. Then there's the US IRA, unless incentives materialise there projects will be put on hold. I therefore think that Fortescue are diligent and very financially disciplined with what and where they are choosing to invest. What we really need to see is how the three FID's are progressing to begin with before jumping the gun. They've got hundreds of projects that they're sifting through, and if anyone knows what projects are going to be viable, it's Fortescue.

Also to take note of was that Fortescue's planned capex for Fortescue Energy in 2024 had been scaled down from $US800 to $US700 million. I see this potentially decreasing even further. It doesnn't however mean that those saving will be paid to shareholders.

Check out this video featuring Fortescue Energy's CEO talking about the Kenya project. Fingers crossed all is progressing well.

https://www.cnbcafrica.com/media/6322742731112/kenya-embarks-on-ambitious-green-growth-plan/

Tony