AUSTRALIA

Fortescue approves $750 million investment for three green projects

Reuters | November 20, 2023 

Credit: Fortescue Future Industries

Australia’s Fortescue on Tuesday approved an estimated total investment of about $750 million over the next three years for two green energy projects and one green steel project as the iron ore miner seeks to become a top-tier clean energy producer.


Fortescue approved investments in the US hydrogen hub in Phoenix, Arizona; the Gladstone 50 megawatt green hydrogen project in Queensland, Australia; and the Christmas Creek green iron trial commercial plant in Western Australia.

About $550 million will be used for developing an electrolyser and liquefaction facility in Phoenix, where first production of liquid green hydrogen is targeted for 2026.

The world’s fourth-largest iron ore maker, which is expanding into production of hydrogen from renewable resources under its Fortescue Energy unit, said it had also decided to fast-track projects in Brazil, Kenya and Norway.

Fortescue is intensifying its push into the US markets.

In the past few days, it has announced plans to set up an advanced manufacturing centre in Michigan and an office in New York, Fortescue Capital, to attract more investment to its green energy companies.

Under a plan to ramp up its green energy business, Fortescue said in August it would stop allocating 10% of its net profit to that unit. Instead, projects and investments would compete for capital allocation, with additional flows from outside investors.

Fortescue expects to hold stakes of 25% to 50% in projects with outside investors.

More details are expected to be unveiled at Fortescue’s annual shareholder meeting later on Tuesday.

(By Himanshi Akhand; Editing by Subhranshu Sahu and Richard Chang)

Fortescue sets up investment platform to fund green energy projects

Reuters | November 16, 2023 |

Andrew Forrest, chairman of Fortescue Future Industries. tours the outdoor Hydrogen Fueling Station and Bioreactor at the National Renewable Energy Laboratory. (Image by Joe DelNero, courtesy of NREL).

Australia’s Fortescue said on Thursday it has launched a new investment platform to attract more investment in its green energy projects as the miner pivots towards establishing itself as a major global supplier of green energy.


New York-based Fortescue Capital will be led by Robert Tichio and act as a fiduciary for third-party capital to complement the company’s finance teams in its energy and metals division, Fortescue said.


“Fortescue is taking its global pipeline of green hydrogen and green ammonia projects to final investment decision and in doing so, has communicated our intention and desire to bring additional equity investors onboard,” Fortescue Energy CEO Mark Hutchinson said.

The funding model for projects will differ based on the project and Fortescue expects to hold stakes of between 25% and 50% stake in projects with outside investors, the company said.

Fortescue, in recent years, has significantly stepped up its investment in renewable projects to cash in on the global transition towards green energy and decarbonization, but that has led to an exodus of high-level management and raised investor concerns.

Tichio joins Fortescue after over 17 years at Riverstone Holdings, a New York-based private equity firm. He will be joined by a leadership team with backgrounds across sustainable infrastructure, climate technology, energy and private markets.

(By Roshan Thomas; Editing by Subhranshu Sahu and Savio D’Souza)

AUSTRALIA
Leadership doubts threaten Fortescue founder’s green reinvention

Bloomberg News | September 7, 2023 |

Andrew Forrest, chairman and founder of Fortescue Metals Group

Credit: World Economic Forum

Three years after he first embarked on a mission to transform an iron ore giant into a clean-energy powerhouse, Fortescue Metals Group Ltd. founder Andrew Forrest is facing a governance storm that may yet imperil his green ambitions.


Last week, in an unexpected move, chief executive officer Fiona Hick resigned from the world’s fourth-largest iron ore producer after less than six months in the role. Two more senior leaders in the group were soon gone, including Guy Debelle, the high-profile former deputy governor at Australia’s central bank, raising difficult questions that are now dominating post-earnings meetings between Fortescue executives and investors.

While Forrest and the executives have discussed few details, the sudden departures — the first announced shortly before Fortescue’s annual earnings — have resurfaced long-simmering questions over the billionaire’s leadership, and whether his sweeping green plans are at odds with the priorities of a lucrative core business. Iron ore still provides nearly all of Fortescue’s $17 billion of annual revenue, even in the face of a sputtering Chinese economy.

“It really is a cause for concern for Fortescue shareholders about what is going on at a board and management level,” said Gavin Wendt, founding director of industry analyst MineLife, though he added the core business was still operating well. “Shareholders and the market want to see board stability, coherent decision-making, and consistency. They’re not really getting that.”

Fortescue has declined to comment on the meetings or specific concerns, but Forrest himself has brushed worries about exits or China’s property sector aside.

In an interview with Bloomberg this week, he cited the need for focus as the company tries to reinvent itself: “They were good people, but we need constant alignment of interest,” he said. “It’s difficult to grow a new industry, and it’s difficult to break into a new industry while you’re growing.”

He said the number of departures — in quick succession — was also not a concern as new talent would be brought in: “We’re upgrading all the time.”

Investors are less sanguine.

Some interviewed by Bloomberg, who declined to be named as they were not authorized to discuss individual holdings publicly, said they were concerned about cash being ploughed into Fortescue Energy, the green arm established in 2020, and the impact of turnover at the top. They also expressed unease over a perceived lack of transparency in the company’s governance.

Management turnover increases reliance on Forrest’s leadership and heightens “key man” risk, Bloomberg Intelligence senior credit analyst Mary Ellen Olson wrote in a note. “These concerns could weaken investor sentiment and hurt valuations.”

Fortescue’s shares have fallen about 7% since their close on Aug. 25, ahead of Hick’s resignation and annual profit figures dented by China’s disappointing post-Covid rebound.

Analysts from UBS AG, who have already met with Fortescue executives this week, said leadership changes, capital allocation and the economics of energy projects had dominated the discussion.

“FMG explained that while former CEO Fiona Hick and CFO Christine Morris were highly regarded, the fit had not worked,” analysts including Lachlan Shaw said in a note. “A quick response was seen as in the best interests of shareholders and governance.”

Bloomberg wasn’t immediately able to reach Morris or Hick. In a LinkedIn post, Hick said: “I have valued the experience at Fortescue and I thank the company and its people for the opportunity.” Debelle, who was CFO of the energy arm, declined to comment on the reasons for his departure.

Green giant

Forrest is an Australian mining heavyweight with a storied history. The great-nephew of Baron John Forrest, the first premier of Western Australia state, he transformed a fledgling resources explorer into Fortescue, an iron ore giant. The company built a new mine, port and railway in Western Australia just as China’s infrastructure boom sent commodity prices rocketing, transforming him into Australia’s richest man.

Now, as part of a climate commitment he attributes to four years spent studying marine biology — he gained a Ph.D in 2019 — Forrest wants to produce 15 million tons globally of green hydrogen using renewable power by 2030. That equates to nearly half of the total global supply anticipated by BloombergNEF that year. In the Democratic Republic of Congo, he’s gunning for a hydropower and green hydrogen project that would be the biggest renewables project in Africa.

Even laudable ambitions are hard to push through when structural economic changes in China are raising questions over the company’s core iron ore business, which expanded on the back of a then-surging property sector now in the doldrums.

And yet, along with annual results, Fortescue dropped a policy to allocate 10% of earnings to the green-energy arm. Now, metals and energy projects will compete for capital on an equal basis.

Leap of faith

The firm’s reputation for capital discipline seems to have “gone out the window” with the green-energy push, said David Coates, analyst at Bell Potter Securities Ltd. Jefferies Inc. analysts wrote in a note there was now the risk of a strategy that “prioritizes projects that have relatively low returns” versus higher-returning mining projects.

Fortescue’s capital expenditure for the current financial year will be between $2.8 billion and $3.2 billion, of which $400 million will go to clean energy, according to Fortescue. The latter figure doesn’t, however, include hydrogen investments, which are expected to be announced later this year.

The UBS analysts said Fortescue executives had described the removal of the 10% rule as a “natural evolution” as the company approached final decisions on a range of energy projects which should compete on their merits. The company is set to decide on five hydrogen or ammonia projects this year.

Forrest, meanwhile, is to be found doubling down. A Perth speech last week, posted online and cited widely by investors and analysts, did little to assuage concerns over the extent of the founder’s fervour for the green businesses. “Individual ambition comes second because what I’m talking about is the future of humanity,” he said, addressing his own “galloping herd” of employees.

He appealed to world leaders before discoursing at length on the ravages caused by extreme temperatures on the human body to an audience including former People’s Bank of China governor Zhou Xiaochuan.

“The bulls will argue that Fortescue has proven the skeptics wrong in the past as many in the market dismissed the company’s chance of success in iron ore early on,” the Jefferies note said, “but to buy FMG now requires some new leaps of faith.”

(By Jason Scott and Sybilla Gross, with assistance from Martin Ritchie and David Stringer)

Fortescue says executive exodus reflects green shift

Bloomberg News | September 6, 2023 

Andrew Forrest, Australian billionaire and Chief Executive Officer of Fortescue. (Credit: Fortescue Metals Group)

A clutch of executive-level departures at Australian iron ore miner Fortescue Metals Group Ltd. is linked to the need to focus on its break into the green-energy industry, the company’s billionaire founder said.


The comments from Andrew Forrest during an interview in Nairobi come after three high-profile executives left the company last week, including former Reserve Bank of Australia Deputy Governor Guy Debelle. Fiona Hick, chief executive officer of the iron ore division, and Christine Morris, the chief financial officer for metals, have also left.

Fortescue, the world’s fourth-largest iron ore miner, last month reported an 11% drop in profits, and investors are bracing for a sharp increase in spending as Forrest spearheads a move to make the company a green hydrogen pioneer. He declined to comment on the specific reasons for the departures, but pointed to a need to maintain focus within the company.

“They were good people, but we need constant alignment of interest,” Forrest said. “It’s difficult to grow a new industry, and it’s difficult to break into a new industry while you’re growing.”

Forrest also hinted at further potential departures, as he referred back to earlier plans to appoint a dozen new executives to facilitate the push into green energy, which will include investments in geothermal power, hydrogen production and the decarbonization of the miner’s vehicle fleet.

“If you talk about the C-suite, we’re nowhere near 12, and we’re upgrading all the time,” he said.

The drop in the Perth-based company’s full-year profits reflect the struggles of iron ore miners as China’s economic slowdown weighs on demand for the steelmaking material. Since reaching a year-high peak in July, Fortescue’s shares have fallen more than 15% in Sydney.

With earnings dropping from its main cash cow, Fortescue announced last week that it was abandoning an earlier policy of spending 10% of profits on the green energy arm, with metals and energy projects to compete for capital on an equal basis. Capital expenditure would be between $2.8 billion and $3.2 billion for the current fiscal year through June 30, of which $400 million would go to the clean-energy arm.

(By Eric Ombok and Mark Burton, with assistance from Jason Scott)

LA REVUE GAUCHE - Left Comment: Search results for Fortescue 

 

Fortescue and China Cosco Cooperate on Ammonia-Fueled Ships

The ammonia-powered OSV Fortescue Green Pioneer, the first vessel of its type (Fortescue)

Published Jul 29, 2024 11:03 PM by The Maritime Executive

 

 

China Cosco, the world's largest shipowner, has agreed to work with Australian mining conglomerate Fortescue to build a new series of bulkers powered by green ammonia. The ships would be used to transport Fortescue's iron ore to China, without onboard emissions.

"The cooperation marks another big step in decarbonizing the shipping industry," said Fortescue in a statement. "These solutions will be integral to achieving our net zero Scope 3 emission target by 2040."

Fortescue already operates the world's first tested ammonia dual-fuel vessel, the OSV Fortescue Green Pioneer. In March, the ship underwent its first trial burning a combination of ammonia and diesel fuel at the Port of Singapore. 

Fortescue has ambitious plans to eliminate its Scope 1 and Scope 2 emissions by 2030, and it views China as an essential partner. Chinese steel mills are the primary customers for Fortescue's iron ore exports, and the Australian company wants China's support in decarbonizing its operations. 

Just last month, Fortescue welcomed Chinese Premier Li Qiang to its green-tech test center in Perth for a tour of zero-emission locomotives, hydrogen-powered trucks and ammonia-fueled engines. The key to the pitch, though, is to partially process the ore in Australia - making "green iron" - and then ship the product to China to turn into steel.

"Our proposed Australia-Sino green iron metal supply chain will bring together mining powered by large-scale renewable power and green hydrogen to produce green iron metal. Our ambition is to provide 100 million tonnes of green iron metal to China each year, eliminating more than 200 million tonnes of carbon dioxide emissions," Fortescue chairman and founder Andrew Forrest said in June.

However, Fortescue recently walked back its plans to produce 15 million tonnes of green hydrogen by 2030, citing the rising cost of green electric power. It has withdrawn from marquee developments like the "Project Coyote" hydrogen plant in British Columbia, which ran into political difficulties over its need for massive amounts of electricity from hydropower. 

On Monday, Fortescue's stock price fell by nine percent on news that a large institutional investor had put $1.2 billion worth of the company's outstanding shares up for sale as a block, equivalent to three percent of Fortescue's share volume. Bloomberg has identified the investor as Capital Group. 
 

AUSTRALIA

Fortescue to step up energy spending despite job cuts

Reuters | July 24, 2024 |

Andrew Forrest, Australian billionaire and founder of Fortescue. (Credit: Fortescue Metals Group)

Australia’s Fortescue said on Thursday it will increase spending on its energy division to advance several new green hydrogen projects next year, disappointing analysts who had expected a company restructure to lower its capital outlay.


The world’s fourth-largest iron ore miner has brought its metals and green energy businesses back together after it split them into separate divisions a year ago amid an exodus of senior management that cast doubt on whether the green unit was on track deliver against stretch targets.

Last week, Fortescue announced it would shed 4.5% of its global workforce and said it was unlikely to meet 2030 targets for green hydrogen production. The cuts also come as the price of iron ore, Fortescue’s main profit driver, is forecast to fall back below $100 a tonne.

Fortescue cuts 700 jobs, slows down green hydrogen plans

Analysts said that suggested Fortescue was slowing down the speed of its hydrogen development but on Thursday, it reaffirmed its commitment to the sector.

Its focus will initially be on four projects in Australia, the United States, Norway and Brazil with additional projects in Morocco, Oman, Egypt and Jordan to follow.

Fortescue still plans to boost capital expenditures at its energy division to $500 million, up from initial plans to spend $300 million, and its net operating expenditure to around $700 million next year, up from as much as $500 million anticipated in 2024.

“Good operational performance but market might be marginally disappointed by still high FMG Energy spend in FY25,” analysts at Citi said in a report.

Analysts also flagged a jump in decarbonization spending to $700 million-$900 million for fiscal 2025 from $300 million-$500 million this year as the miner seeks to meet aggressive net-zero targets by 2030.

Shares in Fortescue fell 2.7%, outpacing smaller losses among other Australian miners.

Fortescue plans to raise its focus on producing green iron, or iron produced with a lower carbon footprint, CEO Dino Otranto told a news briefing from China where he has been talking with potential partners for joint projects.

“Pivoting to producing green iron metal is the next step for us, and we see a massive potential in green iron industry out of Australia, supplying China,” he said.

Fortescue plans to produce green iron from its Christmas Creek operations before the end of next year.

The miner forecast higher iron ore shipments for the fiscal year ending in June 2025 and said for the fourth quarter of 2024 shipments of the steel-making material rose 24% from the third quarter to a quarterly record of 53.7 million metric tons.

It now expects to ship between 190 million tons and 200 million tons of iron ore in fiscal year 2025, up from 191.6 million tons shipped in fiscal year 2024.

(By Ayushman Ojha and Melanie Burton; Editing by Devika Syamnath, Alan Barona and Christian Schmollinger)

WHY?

AUSTRALIA
Fortescue executive rout continues as Debelle quits green unit

AND THEN THERE WERE NONE
Reuters | August 31, 2023 |

(Image courtesy of Fortescue Metals Group.)

Guy Debelle, the former Reserve Bank of Australia deputy governor, resigned from the board of Fortescue Metals Group’s green energy unit on Friday, media reports said, continuing the run of abrupt departures by executives at the world’s fourth largest miner.


Debelle has stepped down as a non-executive director from the board of Fortescue Future Industries (FFI), the green energy arm of Fortescue Metals Group, the Australian Financial Review reported.

In an exchange filing, critical minerals firm Tivan said Debelle will be joining its board as a non-executive director, but did not mention if he would leave FFI’s board.

Fortescue did not respond to a Reuters request for comment.

This is the third senior executive departure from Fortescue just this week. Shares of the miner were trading 3.7% lower in early trade at A$20.64 as at 0012 GMT.

Debelle’s exit comes days after Fortescue’s metals division’s CEO Fiona Hick announced her departure after just six months in the role, and on Thursday the division’s finance chief Christine Morris stepped down after taking on the job three months ago.

Overseen by founder Andrew Forrest as executive chairman, Fortescue has struggled to keep senior management as it sets out to transform itself into a green energy superpower with a global footprint.

The iron ore giant logged a pretax impairment of $1 billion to its flagship Iron Bridge growth project in Western Australia and reported its lowest annual profit since 2020.

“Shareholders are going to be concerned about what and why all these people are leaving, and we’re not really getting the answers,” said Damian Rooney, director of equity sales at Argonaut said.

“It’s all good to wave your arms around and talk about going green, but at the end of the day, you still need to look after your shareholders who are investing money for growth, dividends and alike,” Rooney said.

Executive chairman Andrew Forrest, who spoke to local media earlier this week, said CEO Hick stepped aside following differences of opinion over the firm’s green transition.

“What we have now is a literally galloping herd of people who want to see this company go green,” he said, according to The Australian.

“So if you want to step outside that, you’re given a choice. You’re not fired, there’s no disagreement, you’re just given a choice: step back in, or you call it,” Forrest was quoted as saying.

Hick had joined Fortescue in February, after a year-long search for a replacement for former chief executive Elizabeth Gaines.

Ian Wells, Fortescue’s former chief financial officer, left in January, and acting chief financial officer of the energy division, Felicity Gooding, stepped down last month.

“We view the uncertainty created by multiple changes at the executive levels over the past several years as credit negative,” Sean Williams, analyst at Moody’s Investors Service said in a note earlier in the week.

(By Praveen Menon; Editing by Rashmi Aich and Michael Perry)

Indonesia says Fortescue, Tsingshan to invest billions in Borneo

Reuters | August 24, 2021 | 

Borneo Island (Image credit: Needpix)

Australia’s Fortescue Metals Group and China’s Tsingshan Holding Group could invest billions of dollars to build an industrial estate for metal smelting near a planned hydropower plant on Borneo island, an Indonesian minister said.


The companies have been in talks since early this year about the project and minister of maritime affairs and investment, Luhut Pandjaitan, has said smelting of iron, nickel and copper ores at the estate could start as early as 2023.

Fortescue could invest $12 billion, while Tsingshan has the “potential” to pump in $30 billion, a slide displayed by Luhut during a presentation on Tuesday showed.

“Total investment, there will be $100 billion, including the dam, and it will be completed in 10 years,” the minister said, adding that groundbreaking was planned for October.

TSINGSHAN ALREADY HAS LARGE INVESTMENTS IN INDONESIA RANGING FROM INDUSTRIAL PARKS TO STAINLESS STEEL PROCESSING

Last September, a Fortescue subsidiary, Fortescue Future Industries (FFI), signed an agreement to conduct feasibility studies into the utilisation of Indonesia’s hydropower and geothermal resources for industrial operations, for potential domestic supply and exports, FFI’s chief executive Julie Shuttleworth said in email in March.

FFI has been announcing ambitious global green energy plans, mostly via green hydrogen. It plans to fund the majority of its projects off its balance sheet, investing about $1 billion a year of its own money.

“FFI is already conducting studies on potential projects in Kalimantan, and we look forward to continuing our positive engagement with local stakeholders,” FFI’s Shuttleworth told Reuters on Wednesday.

Tsingshan already has large investments in Indonesia ranging from industrial parks to stainless steel processing. A spokesman did not respond to a request by Reuters for comments.

Top nickel producer Indonesia has ambitious plans to start processing its rich supplies of nickel laterite ore used in lithium batteries and eventually become a global hub for producing and exporting electric vehicles (EV).

Miners and EV companies alike are keen to ensure that the supply chains of their batteries are green compliant, and are hesitant to invest in projects powered by coal, which nickel smelters usually rely on in Indonesia.

The new metal smelting estate will be located near the 11,000 megawatt Kayan hydropower project in North Kalimantan province, on Indonesia’s side of Borneo island.

(By Bernadette Christina Munthe, Melanie Burton, Tom Daly and Fathin Ungku; Editing by Ed Davies)

Fortescue best positioned to weather industry disruption – report
MINING.com Editor | August 24, 2021 |

Fortescue Metals leads an Australia-heavy Top 10 based on GlobalData research.

Fortescue Metals leads in an Australia-heavy Top 10 listing of companies based on leadership in 10 areas that matter the most to the mining sector, GlobalData reports.


The company, the fourth biggest iron ore producer globally, is the mining company best positioned to take advantage of future disruption in the industry, according to GlobalData analysts.

ON A SCALE OF ONE TO FIVE, AUSTRALIAN COMPANIES RECEIVED AN AVERAGE SCORE OF 3.7, WITH FORTESCUE LEADING THE COUNTRY’S SCORECARD WITH 4.5

The scores are based on overall technology, macroeconomic and sector-specific leadership in the ten key thematic areas developed by GlobalData.

Fortescue Metals is followed by several gold mining firms – US-based Newmont, Russia-based Polyus, South Africa’s Gold Fields, Australia’s Newcrest Mining and Canada’s Kirkland Lake Gold.

Click here to view an interactive chart comparing company ratings across the 10 themes in question.

South African Gold Fields was also highly ranked in GlobalData’s thematic scorecard, announcing new digitizing mines and renewable power operations projects.

On a scale of one to five, Australian companies received an average score of 3.7, with Fortescue leading the country’s scorecard with 4.5.

Australia also has one of the highest representations among top mining companies, being home to five out of 50 of the companies in the GlobalData analysis, only behind China and Canada. However, this number doesn’t include multinational corporations such as Anglo-Australian Rio Tinto or companies that have significant operations in Australia, such as AngloGold Ashanti.

Overall, 44% of the top companies in the GlobalData thematic scorecard are from the Asia-Pacific region, including China.


In the case of Australia, where the five companies on the list shone brightest was the workplace safety theme, scoring an average of 4.4 out of five. Commodity markets and ESG, climate change, and capital raising were also among the most promising themes for Australian companies, while investment in lithium-ion batteries was below the scorecard average.

Companies based in other countries had their own strengths and weaknesses: Chinese corporations, for example, perform well on capital raising but poorly when it comes to climate change, while British companies are more ambitious when it comes to climate change and score well on commodity markets.

For the latter, Rio Tinto, for example, has benefited from the steep rise in iron ore prices over the last 12 months, and is looking to build its position in copper. The successful development of the Jadar project in Serbia would also improve its position in lithium-ion battery theme.

These scores are based on overall technology, macroeconomic and sector-specific leadership in 10 of the key themes that matter most to the mining industry and are generated by GlobalData analysts’ assessments.

Fortescue sees green revolution, pushes for net zero emissions by 2030

MELBOURNE (Reuters) - Australia’s Fortescue Metals Group, the world’s fourth-largest iron ore miner, has set an ambitious plan to become carbon neutral by 2030, bringing forward the target by 10 years as it aims to start producing green hydrogen as soon as 2023.


FILE PHOTO: The logo of Australia's Fortescue Metals Group (FMG) can be seen on a bulk carrier as it is loaded with iron ore at the coastal town of Port Hedland in Western Australia, November 29, 2018. Picture taken November 29, 2018. REUTERS/Melanie Burton/File Photo

Fortescue Chairman Andrew Forrest predicted the world’s conversion to green energy and green products would occur “almost violently” compared to most forecasts, which assumed hydrogen produced from renewable energy would only become commercially viable in the 2030s.

“As of today’s announcement, all those calculations will have to change,” Forrest told reporters in a media call on Monday.

Fortescue gave no cost estimate for achieving its goal and said it was still working to calculate how much hydrogen it would need to meet the carbon neutral target. Forrest said the company would only use carbon offsets as a last resort to help meet the goal.

“Fortescue is now firmly leading corporate Australia with this commitment to reach net zero emissions by 2030, without reliance on offsets,” the Australasian Centre for Corporate Responsibility said in a statement.

“However, the commitment has not set a target for the Scope 3 emissions from steel production, which is easily the largest part of its carbon footprint.”

Unlike its peers, Fortescue does not disclose estimates of customer emissions, so-called scope 3, arguing that would be double counting under the United Nations framework, which mandates nations take responsibility for emissions within their borders.

Fortescue Future Industries aims to produce green hydrogen and green ammonia which would help it replace 1 billion litres a year of diesel at the miner’s own operations while also creating clean fuel alternatives for others, including steel makers who use metallurgical coal.

“I don’t think there’ll be a coal-fired blast furnace in operation by 2050, period,” Forrest told reporters.


Green hydrogen is a zero-carbon fuel made by using renewable power to split water into hydrogen and oxygen. It is increasingly promoted as a way to decarbonise emissions-intensive heavy industry and long haul transport.

The announcement comes as peers Rio Tinto and BHP Group step up their drive towards renewable energy, and investors increasingly press firms to disclose, track and meet emissions targets.

Fortescue said it would incorporate carbon emission targets into its short- and long-term pay incentives across the company.


Reporting by Shashwat Awasthi in Bengaluru; Additional reporting by Sonali Paul and Melanie Burton in Melbourne; Editing by Simon Cameron-Moore and Jacqueline Wong

Liebherr and Fortescue partner on world’s first autonomous electric haul truck

Jo Borrás | Jul 29 2024 - 


In what both companies claim to be a world’s first, Liebherr and Fortescue have announced plans to jointly develop a fully Autonomous Haulage Solution (AHS) for their massive, 264-ton BEV-converted electric haul trucks.

The on-site validation of a fleet of the four zero emission Liebherr T 264 autonomous trucks equipped with AHS is already underway, having begun earlier this month at a purpose-built facility at the Fortescue Christmas Creek mine. That’s the same active mining site that’s also testing Liebherr’s BEV-converted excavator.

“With our teams now fully integrated, Liebherr is excited to formally announce our partnership with Fortescue to collectively develop and deploy our Autonomous Haulage Solution,” says Oliver Weiss, Executive Vice President, R&D, Engineering, and Production, Liebherr Mining. “Liebherr has always prioritised market-led product development and we are privileged to be partnering with Fortescue. Our collaborative efforts will be beneficial for not only Fortescue, but all customers who choose to implement Liebherr technology products on their sites.”

As part of the development of AHS, Liebherr and Fortescue will develop an integrated Fleet Management System and a Machine Guidance Solution (no acronyms there, apparently), capable of being used independently alongside human-operated machines.

Upon completion of the AHS’ validation cycle, the Autonomous Haulage Solution will be deployed across all the global Fortescue mining sites.

“This development will allow us to offer the global market a complete AHS,” says Weiss. “These innovative technologies form part of our expanding range of technology products and are another step forward in our strategy to become a total solution provider for the mining industry.”

Liebherr will begin offering AHS to other mining customers as the company continues to expand its autonomous tech portfolio.

Electrek’s Take

Fortescue gets all the fun electric toys; via Liebherr.

As we discussed in our special mining episode of Quick Charge, mines are great applications for both autonomous trucks and battery-electric vehicles. I think I said it well enough there to repost the video, below, and argue out the details in the comments. Enjoy!

Quick Charge mining episode

 

First Bunkering and Tests of Ammonia as Marine Fuel Completed in Singapore

Fortescue Green Pioneer successfully bunkered with ammonia and began engine tests (MPA)

PUBLISHED MAR 15, 2024 6:24 PM BY THE MARITIME EXECUTIVE

 

 

In what may be a pivotal moment in the future of alternative marine fuels, the world’s first bunkering of ammonia and tests of adapted engines took place in Singapore aboard an offshore supply vessel retrofitted by Australia’s Fortescue Group. The testing is ongoing helping to develop the information on safety and management that might one day see ammonia become one of the leading marine fuels.

The tests were carried out with the Fortescue Green Pioneer, a 3,100 dwt vessel built in 2010 in Indonesia. Fortescue Future Industries acquired the now 14-year-old supply ship MMA Leveque early in 2022 from Australia-based MMA Offshore. It was originally outfitted with four diesel-electric Cummins main engines.

Fortescue began in 2022 testing the conversion of a four-stroke engine to run on ammonia in combination with diesel as its pilot fuel. The tests took place at the company’s facility in Perth, Australia, and in July 2023 the conversion work on the vessel began at Seatrium’s Benoi yard. Two of the vessel’s four engines were enabled to use ammonia in the process which included the installation of the gas fuel delivery system, safety systems, and the infrastructure to support the operations. 

The vessel was previewed at the COP28 conference when the company’s flamboyant founder and chairman Andrew Forrest arrived in Dubai aboard the Fortescue Green Pioneer. He called for the world’s ports to prepare and develop the infrastructure for ammonia as a marine fuel. The ship was not able to sail on ammonia he said because no port was ready.

The Maritime and Port Authority of Singapore worked with partners including DNV and fuel supplier Vopak. They report since October 2023 they have been conducting workshops to study the hazards and safety protocols. They also developed processes for the mitigation methods and monitoring due to the highly toxic nature of ammonia. Furthermore, they developed training protocols for the handling of ammonia.

“The safe conduct of this fuel trial supports the holistic assessment of the use of ammonia as a marine fuel, and the development of standards and safety procedures,” said Teo Eng Dih, Chief Executive of the MPA. “This will inform the crew training, emergency, and bunkering procedures which MPA, agencies, and the tripartite community are developing in support of making available safe and cost-efficient solutions as MaritimeSG and the international shipping community undergo the energy transition.”

The first bunkering involved three tonnes of liquid ammonia loaded from Vopak’s Banyan Terminal on Jurong Island in Singapore. According to the MPA, as part of the risk management, extensive pre-operations, safety checks, and tests were conducted. They highlight that the fueling was completed with the existing infrastructure demonstrating the industry’s ability to adapt to ammonia as a marine fuel in the future.

The fuel trial was conducted over a period of seven weeks. It included rigorous testing of the vessel’s storage systems for ammonia, as well as the associated piping, gas fuel delivery system, retrofitted engines, and the overall seaworthiness of the Fortescue Green Pioneer. The vessel is registered in Singapore and earned a gas fuel ammonia notation.

The testing and demonstrations are ongoing. A second bunkering of a further three tonnes of liquid ammonia will be loaded for the Fortescue Green Pioneer in the next few weeks.  Further tests and trials are planned as the validation process continues.

AUSTRALIA
Fortescue reveals green steel plans but warns task is enormous

Bloomberg News | December 19, 2022 | 

Andrew Forrest, Australian billionaire and Chief Executive Officer of Fortescue.

Fortescue Metals Group Ltd., the world’s fourth-biggest iron ore miner, has joined forces with Japan’s Mitsubishi Corp. and European steelmaker Voestalpine AG to develop zero-carbon iron using hydrogen at a plant in Austria.


It’s the Australian miner’s first foray into so-called “green steel,” which aims to exclude coal from the steelmaking process and so help clean up one of the world’s dirtiest industries. Iron ore is the primary feedstock for the majority of steel, the world’s most widely used metal.

The project will use technology developed by Primetals Technologies Ltd., a venture involving another Mitsubishi company, that replaces coal-reliant blast furnaces with hydrogen and a smelter powered by electricity. If that electricity is entirely renewable, then in theory the process won’t emit any carbon.

“You make enormous amounts of carbon when you make steel — it’s about 7% to 10% of the world’s emissions,” Mark Hutchinson, chief executive officer of the company’s green energy division, Fortescue Future Industries, said in a phone interview. “We’ve got to fix this.”

Fortescue’s joint venture, which will mostly be funded by European government grants, aims to complete a pilot plant by 2025, and build a commercial scale facility by the end of the decade, Hutchinson said.

Hydrogen demand

Decarbonizing steel is a crucial step in the fight to halt climate change, and development of large-scale plants would send demand for hydrogen soaring. That would benefit Fortescue, which plans to produce 15 million tons a year of green hydrogen by 2030 as part of Chairman Andrew Forrest’s goal of becoming a major clean energy producer.

A growing number of miners and steelmakers are racing to develop green steel technologies using hydrogen. The most advanced is Hybrit, a Swedish joint venture of steelmaker SSAB AB, iron ore producer Luossavaara-Kiirunavaara AB and power company Vattenfall AB. Germany’s Thyssenkrupp AG, South Korea’s Posco Holdings Inc., and China Baowu Steel Group Corp. are also experimenting with green steel.

But the technology is expensive and at an early stage and often requires a high grade of iron ore. According to Hutchinson, the method developed by Primetals may work with the lower quality ore that Fortescue and others mine in Australia’s Pilbara region. Part of the goal of the pilot plant will be to test different grades, which Fortescue will supply.

Hutchinson cautioned not to expect quick results, saying that decarbonizing the world’s steel sector is likely to develop slowly over decades and will require “enormous” investment in renewable energy.

“To think about doing the entire industry, the amount of renewables needed to do that is just extraordinary,” he said.

Austria’s Voestalpine plans to begin switching its coal-based steel output to hydrogen from 2027. “Over the long term, our mission is carbon-neutral steel production using green hydrogen, for which we are already undertaking intensive research into promising breakthrough technologies,” Hubert Zajicek, the company’s head of steel, said in a statement.

(By James Fernyhough)

Australian Billionaire Forrest Plans Green Energy Factory to Rival China

Dan Murtaugh, Bloomberg News

Andrew Forrest, chairman of Fortescue Metals Group Ltd., reacts during a panel session on day two of the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg, Russia, on Thursday, June 3, 2021. President Vladimir Putin will host Russia’s flagship investor showcase as he seeks to demonstrate its stuttering economy is back to business as usual despite continuing risks from Covid-19 and new waves of western sanctions. , Bloomberg


(Bloomberg) -- Billionaire mining magnate Andrew Forrest is planning a massive factory to build equipment to produce green hydrogen in a key Australian coal hub.

Fortescue Metals Group Ltd.’s energy unit will build a plant with initial capacity to make two gigawatts of electrolyzers a year in Gladstone in Queensland, home to one of the world’s largest coal-export terminals. Construction will start in February with manufacturing targeted to begin in early 2023, the company said in a Sunday statement.

The initial capacity would make the plant among the largest in the world and vault Australia into early competition with China as a leading producer of the equipment. When paired with renewable energy, electrolyzers can make hydrogen that can be stored and transported and eventually converted into carbon-free energy for power or transportation.

“This initiative is a critical step in Fortescue’s transition from a highly successful pure play iron ore producer, to an even more successful green renewables and resources powerhouse,” Forrest said.

Investment by Fortescue Future Industries, initially $83 million and potentially rising to $650 million, is part of a boom for the equipment, which runs an electric current through water to separate it into hydrogen and oxygen. About 16 gigawatts of manufacturing capacity could come online by 2024, according to BloombergNEF, likely leaving the market over-saturated.


Chinese solar manufacturers have been leading that surge, with Longi Green Energy Technology Co. and Sungrow Power Supply Co. expected to commission a combined 2.5 gigawatts of manufacturing capacity by the end of 2022, BNEF said in a July report.

Fortescue will also carry out a study with fertilizer supplier Incitec Pivot Ltd. on the feasibility of converting an ammonia production facility in Brisbane from natural gas to green hydrogen, the company said in a separate Monday statement.

©2021 Bloomberg L.P.

New $1 billion-plus project in Queensland to double world's green hydrogen production capacity

By Phoebe Hosier
Posted Sat 9 Oct 2021

Fortescue Future Industries founder Dr Andrew Forrest and Queensland Premier Annastacia Palaszczuk announcing the project in Gladstone.

(ABC News: Katrina Beavan)

Fortescue Future Industries (FFI) will build the world's largest green energy hydrogen manufacturing facility in Central Queensland, mining billionaire and company founder Andrew "Twiggy" Forrest says.

Key points:

Fortescue Future Industries' new facility is expected to double the world's green hydrogen capacity

The $1 billion-plus investment is expected bring thousands of jobs into the future
When completed, its green hydrogen manufacturing facility will be the biggest of its kind in the world

The first step in the project — a $115 million manufacturing facility set to be built in Aldoga, west of Gladstone — is expected to double the world's green hydrogen production capacity and bring thousands of jobs to Queensland’s energy industry for years to come.

The plant will be manufacturing green energy infrastructure and equipment — such as electrolysers, cabling and wind turbines — to create green hydrogen that will be exported across the world.

Mr Forrest said the announcement marked the first stage of a "billion-plus dollar", six-step operation.

The first stage of the operation, which is expected to be completed early next year, is set to create 120 construction jobs and 53 operational jobs.

Mr Forrest described the proposed facility as a "breakthrough" for Australia's green energy market that signalled the start of an industrial revolution.


"We will not allow the world to keep on cooking — we will not allow our children to inherit a much-less stable environment."This is the future," Mr Forrest said from the Port of Gladstone.

"I'm convinced we have thousands of times more energy available than we'll ever need

.


"The world absolutely can — and, therefore, must — move on from a polluting future."

Mr Forrest said the facility would double the world's green hydrogen production capacity, with the first stage expected to produce 2 gigawatts of hydrogen electrolysers each year.

Electrolysers split hydrogen from water, producing emission-free energy.

Mr Forrest said he had spent the past 15 months travelling to 62 countries across the globe to determine the best location to build the facility.

"Queensland has the beautiful combination of wind and solar and you have a hard-working, educated people [and] a great government steering into a green hydrogen future," he said.

Mr Forrest said he expected the first electrolysers to be produced and ready to be exported by 2023.

Electrolysers split hydrogen from water, producing emission-free energy.(ABC News)

Renewable 'energy superpower'

Premier Annastacia Palaszczuk said the announcement secured Queensland as part of the "green renewably hydrogen energy revolution".

"Hydrogen is part of Queensland's future and [this] sets Queensland up to be an energy powerhouse in green renewable energy," she said.

Ms Palaszczuk said the announcement was as significant for the state's future as winning the right to host the 2032 Olympic Games.

"Our close proximity to Asia, our great trading relationships but, in terms of manufacturing, this will mean there will be ongoing jobs … into the thousands into the future," she said.

The Premier said 300 jobs would be created in regional Queensland over the lifespan of the facility.

"Now we are moving to the next level. The next 11 years leading up to the Olympics will transform our state," Ms Palaszczuk said.

An artist's impression of FFI's green energy hydrogen manufacturing facility in Gladstone in Central Queensland.(Supplied)

Queensland Treasurer Cameron Dick said the announcement heralded "a sunrise on a new industry for Queensland".

Mr Dick said the facility was expected to double the world's green hydrogen capacity, with the first stage of the operation expected to generate 2 gigawatts.


"We will almost triple it right here in this state … we can be that energy superpower for the world," Mr Dick said.

He said the facility would mean Traditional Owners in the Gladstone region could be offered secure work in the industry, while training would be set up in local high schools.

Earlier this year, Mr Forrest estimated the green hydrogen market could generate revenues of $US12 trillion by 2050.

He said his company had committed to going carbon neutral by 2030.

The announcement comes as the federal government remains yet to set a target of net-zero emissions by 2050.

Australia has faced increasing international pressure to agree to the 2050 goal after the US and UK sought assurances of a sufficient reduction in emissions.

Map showing FFI's master plan.(Supplied)
Posted 9 Oct 2021,

WAR CRIMINAL AT WEF/DAVOS

Congo president demands more from $6.2 billion China metals deal

Bloomberg News | January 19, 2023 | 

Felix Tshisekedi, President of the Democratic Republic of the Congo. Image courtesy of the World Economic Forum via Flickr.

Democratic Republic of Congo President Felix Tshisekedi criticized a $6.2 billion minerals-for-infrastructure contract with China, saying the world’s largest producer of a key battery metal hasn’t benefited from the deal.


Congo, Africa’s second-largest nation by landmass, is flush with natural resources — including copper and cobalt that are major components in electric vehicles — but remains one of the world’s least-developed countries. Most of its minerals end up in China, which signed a landmark deal with Tshisekedi’s predecessor in 2008 to trade roads and buildings for the two metals.

“The Chinese, they’ve made a lot of money and made a lot of profit from this contract,” Tshisekedi said in an interview at the World Economic Forum in Davos, Switzerland. “Now our need is simply to re-balance things in a way that it becomes win-win.”

The contract renegotiation is part of a campaign by the president to ensure the country gets paid for the full value of its resources, which are increasingly in high demand.

The accord with China was signed at a time when Congo was emerging from decades of dictatorship and war and newly elected President Joseph Kabila was desperate for financing. It mandated that Chinese companies invest $3.2 billion in a copper-cobalt mine and another $3 billion in infrastructure funded by the mine’s revenue.
‘Nothing tangible’

Congo’s government says China has released less than a third of the infrastructure funds.

“We’re happy to be friends with the Chinese, but the contract was badly drawn up, very badly,” Tshisekedi said. “Today, the Democratic Republic of Congo has derived no benefit from it. There’s nothing tangible, no positive impact, I’d say, for our population.”

The Chinese Embassy in Congo and the Chinese ambassador didn’t immediately respond to an email and a text message requesting comment on the negotiations, which have gone on for more than a year.

“You know, the Chinese are the champions of marathon discussions,” Tshisekedi said. “They’re known worldwide for it. We’re undergoing this experience now and so, we’ll see, but we remain optimistic.”

Negotiations are also dragging on over the Grand Inga site with Australia’s Fortescue Metals Group Ltd., which has a memorandum of understanding with Congo to develop what could be the world’s largest hydropower project, Tshisekedi said.
African investors

The president wants Fortescue to allow other investors into the deal, especially from Africa, and possibly scale down its ambitions in order to speed up development, he said.

“We’re not on the same wavelength,” he said, adding that he’d met at Davos with Andrew Forrest, Fortescue’s billionaire chairman.

“We want to make it a kind of opportunity to also unite other interests, particularly African interests,” Tshisekedi said. “We’re open to everything, to all discussions, to all meetings.”

Talks with Fortescue are continuing, Tshisekedi’s director of communications later confirmed. Fortescue Future Industries Ltd. plans to use Inga’s energy, which could eventually be twice as powerful as China’s Three Gorges project, to produce green hydrogen and green ammonia.

The company is in “active discussions” about the project, FFI Chief Executive Officer Mark Hutchinson said in an emailed response to a request for comment. Tshisekedi plans to visit Australia to continue those talks, he said.

“Fortescue has a team in the DRC and are continuing to work closely with the government to take this forward,” Hutchinson said. “Fortescue welcomes other partners to this important project.”

There’s no timetable for the next phase of Inga, the 10-gigawatt project known as Inga 3, Tshisekedi said.

Regional conflict

The president, who’s also dealing with a multitude of violent conflicts at home and a reelection campaign at year’s end, has grown more outspoken against outsiders taking advantage of Congo’s resources for their own gain.

This has been particularly true in the country’s east, where an offensive by the M23 rebel group — allegedly backed by neighboring Rwanda — has displaced more than 450,000 people. Rwanda denies that it’s supporting the militants, who say they’re fighting for the rights of Congolese of Rwandan heritage.

Eastern Congo has been wracked by conflict since the 1990s, when violence from the aftermath of Rwanda’s civil war and genocide spread across the border. More than 100 armed groups remain active in the region, some of whom profit from the illegal trade in natural resources, which often transit through neighboring countries.

“Rwanda has been at the base of instability in Democratic Republic of Congo for twenty years,” Tshisekedi said. “It’s thanks to this instability that it can create mafia networks of illicit exploitation of gold, coltan and other minerals.”
Cobalt monopoly

Rwanda’s government rejected Tshisekedi’s accusation.

“The root cause of instability in eastern Congo is the security and governance failures of the Congolese government and the longtime involvement in the mining sector of the Democratic Forces for the Liberation of Rwanda, the genocidal militia that fled Rwanda in 1994, as well as dozens of Congolese illegal armed groups that are supported by the Congolese military and government, and which exploit Congo’s natural resources with impunity,” spokeswoman Yolande Makolo said by text message.

A plan to impose a monopoly on the sale of all hand-dug cobalt is also part of Tshisekedi’s goal to ensure Congo is paid for its minerals, he said.

Congo’s state-owned Entreprise Generale du Cobalt, or EGC, still needs a full management team and a regulator, according to the president. Talks are ongoing with potential partners, including Trafigura Group, the Singapore-based commodities trader, he said.

Congo is responsible for about 70% of world cobalt production, as much as 30% of which comes from so-called artisanal miners.

Those miners often work in dangerous and unregulated conditions, and EGC “represents one of the brightest hopes for instigating the improvements needed,” Trafigura said in an emailed response to questions Thursday.

“Trafigura remains committed to its commercial agreement with EGC and delivering on the pressing need to kick-start the large-scale formalization” of the artisanal and small-scale mining cobalt industry, it said.

(By Jacqueline Simmons and Michael J. Kavanagh, with assistance from James Fernyhough and Kamlesh Bhuckory)

Fortescue apologises for clearing land on Aboriginal sacred site

MELBOURNE (Reuters) - Australia's Fortescue Metals Group has apologised to an Aboriginal group for clearing land on a heritage site while flouting a government condition for representatives of the community to be present when the damage took place.

© Reuters/David Gray FILE PHOTO: File picture of a giant 

excavator loading a mining truck at the Fortescue Solomon iron

 ore mine south of Port Hedland

It is the week's second such incident, despite pressure on Australian iron ore miners to show they have improved practices to manage important sites after Rio Tinto destroyed two sacred rock shelters for a mine expansion last May.

Fortescue had state government permission to clear the land in the Weelamurra Creek area registered as sacred to the Wintawari Guruma people, on condition that community elders were present to perform salvage and cultural rites, four documents reviewed by Reuters showed.

But an administrative error led to land clearing works earlier than scheduled on Feb. 1 in the absence of the representatives, Fortescue Chief Executive Elizabeth Gaines said in a statement.

"I have spoken to Wintawari Gurama Aboriginal Corporation (WGAC) Chairman Glen Camille regarding this incident to personally express my regret and sincere apology on behalf of Fortescue," she said.

"We have carried out a full investigation into the matter which has shown that this unfortunately occurred as a result of an administrative error...We have paused all clearing works at this site as we work with WGAC on the matter."

Gaines did not provide detail on the nature of the administrative error.

In a statement, the community corporation said, "WGAC members are disappointed by FMG’s actions, particularly after investing so much time negotiating an outcome with them that included elders being present during the destruction.

It added, "WGAC is concerned by yet another example of poor conduct by a mining company and the apparent disregard for Aboriginal cultural heritage."

WGAC chairman Glenn Camille requested that the Western Australian government prosecute Fortescue, in a letter to Minster for Aboriginal Affairs Ben Wyatt, reviewed by Reuters.

"We sincerely hope that you and the next Minister for Aboriginal Affairs decide to send a message to the mining industry about the importance of protecting our Indigenous heritage."

In a statement, Wyatt said that he had been advised that an alleged breach was under official investigation.

"The matter is being treated very seriously and with utmost priority by the Department. I trust that the investigation will be managed expeditiously and concluded swiftly."

Earlier this week, BHP Group said it was investigating how a rock fall damaged a registered site at its South Flank operations that was not part of active mining operations.

Last year's Rio Tinto destruction cost its chief executive and two senior leaders their jobs, and sparked a parliamentary inquiry.

(Reporting by Melanie Burton; Editing by Clarence Fernandez and Louise Heavens)

Fortescue Metals preparing to cut up to 1,000 jobs - The Australian


FILE PHOTO: The logo of Australia's Fortescue Metals Group can be seen on a bulk carrier as it is loaded with iron ore at the coastal town of Port Hedland in Western Australia

Thu, February 9, 2023 

SYDNEY (Reuters) - Fortescue Metals Group is looking to cut up to 1,000 jobs across its back office and clean energy unit as part of a cost-cutting exercise, The Australian reported on Thursday, less than week before Fortescue reports half-yearly results.

The cuts will be across Fortescue Future Industries, a clean energy subsidiary focused on producing hydrogen using renewable energy, and head office functions like finance and IT, the Australian reported, citing unnamed sources.

A spokesperson for the world's No. 4 iron ore miner said any significant changes to the number of its employees require board approval, which has not been received.

"We are always looking for opportunities for continuous business improvement," the spokesperson said in a statement on Thursday.

Fortescue reports results for the six months through December on Feb. 15.

The company is preparing to cut costs despite a more than three-month rally in iron ore prices as traders bid up the metal in anticipation of China's economy reopening from pandemic restrictions.

The Australian reported that job losses at the company's Pilbara region mining operations are likely, although safety staff and production workers would probably be exempt.

Some of the job losses follow the near completion of Fortescue's Iron Bridge project, set to go into production in March, the paper added.

(Reporting by Lewis Jackson; Editing by Kenneth Maxwell)

ALT FUELS

Fortescue’s Ammonia-Fueled Ship Runs Propulsion and Maneuverability Tests

Fortescue Green Pioneer completed ammonia propulsion and maneuverability tests using ammonia and biofuel (Fortescue)

PUBLISHED MAY 6, 2024 1:47 PM BY THE MARITIME EXECUTIVE

 

 

Sea trials continue for the first vessel operating on ammonia, an offshore supply vessel converted by Australia’s Fortescue. Earlier this year, the vessel completed the first marine bunkering of ammonia, and now after a second bunkering undertook the next phase of its ongoing sea trials.

The testing and trials are being conducted with the cooperation and close supervision of the Maritime and Port Authority of Singapore, where the vessel is registered. The MPA developed stringent safety protocols and reports it conducted Ammonia plume modeling and drone surveillance to support safety and incident planning and response. With a lack of maritime regulations in place for ammonia as a fuel. the MPA is using these first trials to develop the model for safe handling and operation of ammonia-fueled vessels.

Fortescue completed the conversion of the 2010-built MMA Leveque (3,100 dwt) in 2023 into the world’s first operational ammonia-fueled vessel. One of the four Cummins engines was converted for ammonia. The 246-foot PSV made her debut as the Fortescue Green Pioneer in late in 2023 and received the first notations from DNV and Singapore for ammonia operations after loading three tonnes of liquid ammonia and conducting seven weeks of tests in February and March 2024.

The next round began by loading a further four tonnes of liquid ammonia, along with diesel and Hydrogenated Vegetable Oil, a second-generation biofuel. Between April 23 and May 2, they conducted trials involving propulsion and maneuverability. The trials also included tests to validate the management of nitrogen-based emissions. They also assessed the vessel’s engine capability to operate on varying amounts of biofuel in combination with ammonia.

The trials took place in the Raffles Reserved Anchorage off Singapore. They are looking to complete the certification of the vessel and demonstrate the ammonia-fueled operations for the future of the maritime industry.

During February and March, the vessel completed a series of fuel trials. During those tests, the vessel was at anchor demonstrating the ammonia storage system, associated piping, gas fuel delivery system, retrofitted engines, and seaworthiness.

Fortescue is working with research institutes, industry partners, and government agencies including the MPA and DNV. The company plans to use the PSV to drive awareness of ammonia and demonstrate its operations for the marine sector. 

Several other pioneering projects are also expected to proceed, including NYK is leading an effort in Japan to convert its LNG-fueled tug to begin operations later this year fueled by ammonia. So far, only a handful of ship owners have ordered ammonia-fueled vessels as they wait for these demonstrations and the commercial introduction of the engines and fuel systems required to adopt ammonia as a marine fuel.

USCG Agreement Sets Development Pathway for First Hydrogen-Power US Towboat

Rendering of the design for the Hydrogen One towboat (Elliott Bay Design Group)

PUBLISHED MAY 6, 2024 4:14 PM BY THE MARITIME EXECUTIVE

 

The project that has been underway for the past several years to develop the U.S.’s first hydrogen-power towboat reached a critical agreement with the U.S. Coast Guard that provides a pathway forward. Maritime Partners, which is leading the project, signed a Design Basis Agreement with the USCG for the Hydrogen One towboat that will use a novel technology that produces hydrogen aboard the ship eliminating the challenges of bunkering and storing hydrogen.

“The signing of this agreement opens the pathway for us to deploy our technological capabilities,” said Bick Brooks, co-founder and CEO of Maritime Partners. “With this, Hydrogen One is one step closer to becoming the world’s first vessel to utilize hydrogen generator technology greatly reducing emissions, increasing efficiency, and providing a model for cleaner energy use as the industry continues to seek ways to decarbonize.”

The DBA process was established by the U.S. Coast Guard to set the rules for new and novel technology proposed for installation on marine vessels. By reaching the agreement, they explained that the project would be working towards an agreed-upon framework with the U.S. Coast Guard for the design, arrangement, and engineering aspects of the power system and associated safety systems. It established a plan for the review, inspection, and eventual certification of the Hydrogen One.

The towboat is being designed as a first-of-its-kind vessel using new, cleaner, fuel cell technology that works by converting stored methanol to hydrogen. The produced hydrogen is output, on-demand, to the fuel cell to generate power for the vessel.

When the project was revealed in 2021, they said the towboat would be nearly 89 feet (27 meters) and designed to push barges from the Port of New Orleans along the Mississippi River and its tributaries. They projected the vessel will be able to travel for up to about four days at a speed of 6 knots, or cover a total of 550 miles, with a load between fueling. The concept called for a propulsion system capable of generating up to 2,700 HP propulsion power, with 1,700 HP generated by the fuel cell and the remainder from batteries.

The partners report that a string of successful tests of the technology were completed in Sweden in 2023. They said it demonstrated the viability of the technology as the sole power generation source for the vessel’s propulsion.

Maritime Partners worked with several industry leaders on the Hydrogen One project, including Seattle-based Elliott Bay Design Group, which is designing the towboat, and Intracoastal Iron Works which was selected as the shipyard to build the vessel. e1 Marine, which holds the license for the technology also worked with RIX Industries, Power Cell Group, among others, to work through the U.S. Coast Guard requirements. ABB Marine & Ports reported in 2021 that it would also participate in the project providing the electrical propulsion plant, including motors, transformers, and the integration of the fuel cell system.

Only a handful of hydrogen-powered vessels have entered service, mostly in Europe. In the U.S. the Sea Change ferry went through a long development process which experienced delays after the hull was launched in 2021 before it finally arrived in San Francisco in 2023. By entering the DBA process, the goal is to ensure a smooth process to move the Hydrogen One through design and into operation.