Fortescue blames “policy ambiguity” as it pulls pin on renewables plan for Australia’s biggest sheep station

Andrew Forrest’s Fortescue Group has dropped plans to buy a massive sheep station in outback Western Australia and use it as the base for a renewable energy hub, citing “ambiguity” over state government approvals.

Reports that the iron ore billionaire was eyeing off the country’s largest sheep property, Rawlinna Station, in connection with his sprawling renewable energy and green hydrogen ambitions first emerged in April of 2023.

Sources said at the time that Forrest’s plan for the more than 1 million hectare property east of Kalgoorlie near the Nullarbor plan was to continue current operations – it runs around 60,000 Merino sheep – while also exploring the potential for co-location of renewable energy assets.

But Fortescue this week confirmed that it has pulled out of the bidding for the vast property, after being kept waiting on approval from the Western Australia government.

“We have been waiting for ministerial approval of the transfer for 11 months,” a company spokesperson said in a statement on Tuesday.

“Following this extended period, with policy ambiguity remaining regarding government approval, we have chosen to withdraw from the sale of Rawlinna which was always a long-term energy opportunity for Fortescue.

Fortescue says its withdrawal from the sale will provide certainty for the Rawlinna workforce and the Nullarbor community.

“Fortescue remains committed to pursuing long term green energy opportunities in the Nullabor and Southeast WA region via alternate arrangements,” the spokesperson said.

Fortescue has been pursuing potentially vast renewable energy projects in various parts of Australia – including the south of W.A. to support some of its massive green hydrogen plans, although the timeline for the green hydrogen ambitions has been pushed back.

Fortsecue also plans to eliminate fossil fuels from its operations by the end of the decade, in a push for “real zero” emissions by 2030 that is focused on its operations in the Pilbara.

That plan is detailed in a 90-page document that Forrest unveiled at a recent event in New York, where he also criticised governments for dragging their heels on climate action and ambition.