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Fortescue's Forrest Hones in on Renewable Energy, Aims to Go Green by 2030
Apr. 02, 2025 09:25AM PST
Fortescue's Andrew Forrest has vowed the company will quit fossil fuels by 2030, pushing for renewable energy in the mining industry.
Mojahid Mottakin / Adobe Stock
Andrew Forrest, founder and executive chair of major mining companyFortescue (ASX:FMG,OTCQX:FSUMF), has been making headlines following his bold statements on renewable energy.
Toward the end of February, the mining tycoon was quoted as saying that Fortescue is quitting fossil fuels.
According to news outlets like TIME and CNBC, he said the company will stop burning fossil fuels across its Australian iron ore operations by the decade’s end, calling on other companies to do the same.
“It’s time for businesses to stop talking about long-term targets and completely ditch fossil fuels in the coming years rather than in the coming decades,” he states in a February 25 TIME article.
“If you think you can’t go green, then you’re right,” he says of his industry colleagues … It’s time for you to get off the stage and learn from someone with more talent, more conviction, or initiative than you who can lead your company.”
Fortescue’s vow to eliminate fossil fuels by 2030 and lower costs traces back to its US$6.2 billion investment in 2022, when it announced its plan for industry-leading decarbonisation. It said at the time that the investment was designed to eliminate its fossil fuel risk profile and enable it to supply customers with carbon-free products.
Notable big oil companies like BP (LSE:BP,NYSE:BP) and Shell (LSE:SHEL,NYSE:SHEL) have recently announced they will cut back on clean energy pledges, saying that they will focus more on oil and gas production.
BP said the decision is a strategic reset to reduce and reallocate capital expenditure to drive growth, pursue performance improvements and work on cost efficiency. Meanwhile, Shell CEO Wael Sawan explained that the company is providing the secure energy customers need at the present while working on its transformation to win in a low-carbon future.
Forrest believes big oil companies are getting it wrong, especially now that customers are in search of green energy.
“I’ve always found that the customer is always right, which is why we’re going renewable and moving away from oil and gas," he said on CNBC 's Squawk Box Europe on March 24.
"Our customers are saying, ‘We want energy, but not at any cost, and if you can give us green energy at the same price as dirty (energy) then we are going to buy green every day.’ That’s my job, and that’s Fortescue’s job."
He added, “Well, if (the) oil and gas (industry) doesn’t want to supply green energy, guess what, Fortescue will."
As the fourth largest iron ore producer in the world, Fortescue’s push to reduce fossil fuel dependency and emissions is a significant step toward sustainable mining practices.
Its US$6.2 billion investment to eliminate fossil fuels is expected to displace around 700 million litres of diesel and 15 million gigajoules of gas per year — reducing emissions by 3 million tonnes of carbon dioxide annually.
The company is also working toward its green fleet, developing battery-electric haul trucks and exploring hydrogen- and ammonia-powered mining equipment to eliminate diesel consumption.
Green initiatives and developments
Fortescue has made a variety of advances into clean energy in recent years.
In March, Fortescue Green Pioneer, the world's first dual-fueled ammonia-powered vessel, docked in London. It is on a global tour of ports aimed at fast-tracking international shipping’s transition to green fuels.
In 2020, the company announced the US$450 million Pilbara generation project, which aims to enhance Fortescue's power-generation capacity using 150 megawatts (MW) of gas-fired power with 150 MW of solar photovoltaic generation and 50 MW of battery storage. The project is part of the Pilbara Energy Connect (PEC) initiative.
Fortescue completed the first phase of PEC in 2024. Included was a 100 MW solar farm at North Star Junction and 140 kilometres of transmission lines and substations.
In an update via X on Wednesday (April 2), the company said that the 100 MW solar farm at North Star is currently supplying over 25 percent of Iron Bridge’s energy demands.
Fortescue’s Renewable Progress Powers Ahead in the Pilbara! 💪
— Fortescue (@FortescueNews) April 2, 2025
As we work towards our Real Zero goal by 2030, we’re thrilled to share updates on our transformative renewable energy projects:
☀️ Operational Now: Our 100MW solar farm at North Star Junction is currently supplying… pic.twitter.com/wxv5JaKZux
Another project, a 190 MW solar farm at Cloudbreak, is expected to be completed in 2027. Fortescue said this will significantly reduce its diesel and gas consumption.
A 640 MW Turner River solar project has also been proposed by the company, which has said it could become Western Australia’s largest green energy initiative. The proposal was submitted by Fortescue's subsidiary, Pilbara Energy, to the Western Australian Environmental Protection Authority.
Sinead Booth, Fortescue's group manager of decarbonisation delivery, said that these initiatives are crucial as the company continues to reduce emissions and advance its commitment to a sustainable future.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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