Iron ore billionaire Andrew Forrest is formalising his new hands on role in the green energy transition of his Fortescue Metals Group as part of a sweeping shakeup of the executive ranks announced on Wednesday.
The changes include some big name appointments – including that of the former head of GE Europe Mark Hutchinson as CEO of Fortescue Future Industries, and former AGL Energy boss Andrew Vesey as head of energy transition projects at FFI.
The biggest change though is the appointment of Forrest as executive chairman of the Fortescue Group, with a specific role of overseeing the iron ore business “for an interim period” and to help drive the company’s green energy transition.
“Dr Forrest will now drive the unique mission to turn Fortescue green by 2030, ensuring the first mover advantage created over the past several years is fully realised for shareholders,” a Fortescue statement said.
The naming of Forrest as executive chairman, something of an anomaly in current corporate governance arrangements, merely confirms the key role he has played in negotiating deals and MoUs, and being the public face of the company’s green energy plans.
The current CEO of Fortescue Metals, Elizabeth Gaines, will step down in August, as previously flagged, and will remain on the board. The current CEO of FFI, Julie Shuttleworth, will remain in a senior executive role.
Vesey is an intriguing addition, particularly given Forrest’s open contempt for the fossil fuel supportive policies of the federal Coalition, and what he describes as the “greenwashing” of the oil and gas industry.
Vesey left abruptly from his role at AGL after being pilloried by the Coalition government and conservatives over his decision to fast track the closure of the Liddell coal generator, now due to shut down its last units early next year.
AGL, of course, is now subject to a landmark battle between tech billionaire Mike Cannon-Brookes, a co-investor with Forrest in Sun Cable, the world’s biggest solar and battery project, and the existing AGL board over the pace of closure of its remaining coal plants.
Fortescue said Vesey, who will be FFI’s head of energy transition projects, has had more than 40 years experience “transforming and repositioning organisations by focusing on advanced technology and execution.” His CV includes senior roles at PGE and AES Corp.
Hutchinson will join FFI in early July 2022, initially in the role of director of Projects, before assuming the role of CEO of FFI, by the end of 2022.
His CV includes a role as head of China for GE, as well as head of Europe. He was also head of Asian Project Advisory at investment bank BZW.
“We must urgently reduce emissions now and at scale,” Hutchinson said in a statement.
“No longer should the world be dependent on heavily polluting fossil fuels. The green industrial revolution is well underway globally and Fortescue is leading it.
“As a result of this revolution, we will see an explosion in manufacturing and green energy jobs worldwide with great benefits for local communities.
Other appointments announced by FFI on Thursday include:
The head of BlackRock China, and a former chair in China of hedge manage Man Group, Ms Li Yifei, has been appointed to the board of Fortescue.
Dr Jalal Bagherli will be appointed co-chair of the recently purchased Williams Advanced Engineering (WAE), along with Mark Barnaba, the current deputy chairman of Fortescue. Jalal was formerly CEO of Dialog Semiconductor Plc, a specialist chip company .
Christiaan Heyning, a founding partner of the Perth branch of McKinsey, has been appointed as dead of decarbonisation.
FFI’s current director of Projects Gordon Cowe, will take on the new role of Head of Projects Development.
The new appointments follow the poaching of RBA deputy governor Guy Debelle as chief financial officer, and a sweep of other executive changes in the last few months.
“Australia, while being the global laggard in climate change policy and business support, has some of the world’s best concurrent solar and wind, entrepreneurial and project development skills as well as free democratic institutions and government,” Forrest said.
“These were the reasons why FFI recently secured an MoU with Germany’s lead energy company to be its lead green hydrogen supplier.
He also sang the praises of Shuttleworth.
“Julie is an absolute warrior; an incredible leader and she has rapidly built a global team and platform for FFI that is now attracting world leading talent and investors”.
““Bringing in someone with Mark’s global leadership experience and proven track record in managing large scale, complex global organisations and projects goes to the heart of our global vision for FFI.
“We are committed to sharply arresting climate change, creating massive economic growth, increasing jobs, and growing our business profitability for our shareholders.”
“We will prove that going green has a fabulous and profitable future, providing significant additional value for shareholders by ramping up innovative and game changing green technologies, green operating know-how and sharing that and our future massive green fuel supply to the world.”
FFI’s current Director of Projects Gordon Cowe, will take on the new role of Head of Projects Development.
