Fortescue signs up China steel giant to green metals mission

Australian iron ore giant Fortescue Metals Group has signed up one of the world’s largest steel makers to its mission to decarbonise metals production, including through the use of green hydrogen – the pet project of FMG’s billionaire founder Andrew Forrest.

Fortescue said on Tuesday it has signed a Memorandum of Understanding with China Baowu Steel Group Corporation – Fortescue’s biggest customer – to collaborate on ways to cut emissions from iron and steel making.

The collaboration will trial technologies at one of China Baowu’s home turf operations, using Fortescue iron ore and green hydrogen.

The pair also plans to collaborate on iron ore beneficiation research and development – ways to improve the chemical, physical and metallurgical characteristics of ore to make steel making more efficient – and on other opportunities in renewable energy and green hydrogen.

“Fortescue is exploring a range of options to reduce emissions in the steel value chain including through partnerships with suppliers, customers and research institutes,” said FMG chief Fiona Hick in a statement.

“We firmly believe that collaboration and partnerships such as this will be integral to developing the technologies required to deliver on our ambitious target of net zero Scope 3 emissions by 2040.”

China Baowu chair Derong Chen says collaborations on decarbonisation of heavy industry are likewise key to the steel giant’s strategy.

“The green and low carbon transition provides Baowu with significant challenges and development opportunities,” Chen said.

“We look forward to conducting more substantive collaborations together on iron ore, green energy and resource development.”