POWER!!!! Fortescue Future Industries, page-4221

No worries Wes.

Interesting to see Dino back in China continuing discussions with potential Chinese partners (see LinkedIn).

Points taken from the presentation below.

* Australia currently exports >900Mtpa iron ore.
* China consumes 1.6Btpa iron ore, producing 1Btpa steel.
* Steel production accounts for 8% of global carbon emissions.

Fortescue's decarbonisation plan..

The company is aimimg to:

* Decarbonise profitably;
* Lower their operating costs; and
* Future proof their business by creating new revenue streams.

Let's look at how this might be achieved with their green iron project.

* In 2024 negotiations took place between Fortescue and the Chinese Government to produce 100Mt of green iron. Negotiations continue.

Here Fortescue have an opportunity to jointly develop a fully integrated Australia-China green iron supply chain.

How so?

Fortescue will aim to provide China with 100Mtpa of green iron to eliminate 220Mtpa of carbon emissions.

Should the partnership materialise...

* The iron ore will be mined using Fortescue’s green equipment.
* Fortescue’s processing facilities will be powered by solar & wind.
* The green power equipment will be supplied by Chinese OEMs.

And it will look like this....

* Green sustainable mining.
* Large-scale renewable power.
* To produce green iron ore with green hydrogen.

What's the plan to bring this all together?

* The capital needed will be minimised through both parties technology.
* Green iron ore production proximate green iron facilities.
* The Chinese OEMs will supply renewable equipment and electrolysers to Fortescue designs.
* It will utilise green hydrogen which will require 8Mtpa of green hydrogen produced using direct solar to hydrogen technology.
* It will be developed in partnership with Chinese steelmakers.
* It will produce a high grade iron product compatible with Chinese steelmaker infrastructure.

The logistics of this all?

* The green iron will be transported from ironmaking facilities to Port Hedland.
* Fortescue will utilise their existing logistics infrastructure and zero emissions rail solution.
* The green iron product will be shipped to China utilising ammonia powered vessels that will be jointly developed between Fortescue & China.
* The companies will aim to produce up to 1.4Mtpa of green ammonia as fuel.
* Where bunkering infrastructure in Australia, China & Singapore already exist.

How might this potential joint venture partnership split look like?

Will it be similar to the Iron Bridge joint venture between FMG (69%) and Formosa Steel (31%)?

Reference:

https://cdn.fortescue.com/docs/default-source/announcements-and-reports/jp-morgan-forum-presentation.pdf?sfvrsn=12a31d37_9

Tony