Fortescue to expand into renewables with green energy arm

Fortescue Metals Group is on a crash course with the fossil fuels sector with a new green energy arm aiming to produce renewable energy at a global scale and cost comparative to traditional energy companies such as Chevron.

Delivering his chairman’s address via video link from Paraguay at the company’s AGM on Wednesday, Andrew Forrest revealed the company would aggressively move into the green energy space with its Fortescue Future Industries arm.

He said FFI would apply the same lessons and company culture that made its iron ore business successful to the global renewable energy sector.

FFI will finance, develop and operate renewable energy projects and Dr Forrest said a team of 40, including himself, had already visited 23 countries to buy up renewable energy patents and intellectual property.

He revealed FFI would aim to build 235 gigawatts of installed energy capacity –greater than Chevron’s 2019 energy production – and had already committed to $1billion out to 2023.

Apart from its Pilbara energy project, Dr Forrest gave few details on specific projects but signalled they could include the production of green hydrogen and ammonia.

More to come.