Fortescue opens first solar farm as it gathers wind assets to help real zero and green hydrogen plans

Andrew Forrest’s iron ore and green energy group Fortescue Metals has begun production from its first solar farm, as it begins to gather wind assets and advance electric and hydrogen transport technologies in its pursuit of “real zero”, green hydrogen and the emerging “green iron” market in China.

The company announced on Thursday that production has begun at the 100 megawatt (MW) North Star Junction solar farm near the new Iron Bridge mine in the Pilbara.

It is the first solar asset to be built by Fortescue, although the 60 MW Chichester solar project (pictured above), built by Alinta Energy and now owned by APA Group, has been helping to power its Cloudbreak and Christmas Creek iron ore mines in the Pilbara.

The North Star solar farm is not yet complete, but forms the first major step, along with some recently completed battery storage projects, in the company’s ambitious goal of reaching “real zero” by 2030 for its iron ore operations – meaning it will burn no fossil fuels for power or transport.

To achieve this, Fortescue will need to build several gigawatts of new wind and solar capacity, along with storage back-up, to replace the gas and diesel generators that currently power its operations, and the diesel used for its giant haul trucks and other transport and mining needs.

Progress is being made, with trials for fully electric and hydrogen hybrid trucks, electric excavators, and work on the so-called battery-powered “infinity train”, although not much has been heard about that in recent months.

Fortescue is currently revelling in record iron ore shipments, so it is not short of a dollar, although it admits costs are rising and it recently announced 700 job cuts as part of its plans to streamline operations.

It has admitted that its ambitious green hydrogen plans of producing 15 million tonnes a year would not be delivered by 2030 as it hoped.

Despite that, Fortescue Energy boss Mark Hutchinson says the goals for green hydrogen are still valid, but with a different timeline, and insists that the “real zero” target – which compares with the 2050 “net zero” adopted by most corporates – is still in place.

“So on the real zero for our own company, we’re absolutely committed to that and progressing extremely well,” Hutchinson told analysts and media on Thursday in response to a question from Renew Economy.

And he isn’t giving up on the green hydrogen market.

“As the green hydrogen market develops around the world, it is really clear that the cost of green power, which is obviously the way you start with green hydrogen, has to be in the $US30 range to make projects viable,” Hutchinson said.

“Therefore, where the power costs are not at this level, we will work steadfastly with those economies to help bring down the cost of electricity by producing electrons. For example, we will consider opportunities to produce electrons from our portfolio with Australia and Queensland.

“Longer term, we totally believe that green hydrogen is what the world ultimately need. That is why we’ll continue to maintain a significant portfolio project. We are realistic about the pace of the current global energy transition, and that is why our initial focus is on four green hydrogen projects across Australia, the United States, Norway and Brazil.”

Asked if that $30/MWh price was possible in Australia, Hutchinson said it was difficult – but most likely in its home base of Western Australia, and in Queensland where it is pursuing several projects, and has announced the first customers of its Gladstone hydrogen electrolyser plant.

Fortescue, as reported in the AFR on Thursday, has quietly transferred the ownership of two gigawatt scale wind projects – Prairie and Wongalee in Queensland – from Windlab, which is majority owned by Forrest’s private interest, to Fortescue.

Hutchinson said these projects could be used to provide electrons for power, or in its green hydrogen ambitious. A lot would depend on the progress of the Copperstring 2.0 transmission project, which will help unlock renewable and vast mineral projects. “It’s very early days at the moment.”

Fortescue CEO Dino Ostranto, meanwhile, was particularly bullish about the emerging green iron market in China, which Fortescue hopes to tap into.

“I’ve been in China all week, meeting with potential partners and steel mills on the opportunities for Australia and China to partner on green iron,” he said.

“Metal is the next step for us, and we see a massive potential in building a green iron industry out of Australia supplying China some announcements we’ve heard this week.

“From next year, all coal fired power plants in China will begin their low carbon transformation as part of the government’s commitment to halve emissions from coal fired power plants by 2027, and by the end of the decade, this will mean all coal power units will be capable of coal firing more than 10% green ammonia.

“I not only remain confident the outlook for steel demand and iron ore, but I’m excited for how we will continue to work with China as we decarbonise our value chain on exploration.”