“Net zero is a con:” Forrest outlines how Fortescue mines will eliminate fossil fuels by end of decade

A day after unveiling a $4 billion plan to buy hundreds of electric haul trucks, dozers and excavators, and unveiling the world’s most powerful EV fast charger, iron ore billionaire Andrew Forrest has outlined in detail how his iron ore company plans to eliminate fossil fuels from its operations by the end of the decade.

Forrest’s push for “real zero” emissions by 2030 is in stark contrast to the “net zero by 2050” targets adopted by nearly every other major corporate. Forrest is not the first to complain that too many companies, and political parties, are using at an excuse to kick any serious attempts at cutting emissions down the road.

As for Forrest’s own ambitious targets, most doubt he can pull it off – and cite his recent admission that his green hydrogen goals won’t be met in the timeframe he hoped. But, at a UN-sponsored event in New York this week, he released a 90-page document explaining in detail how it will be done.

“Net Zero 2050 is a con,” Forrest said. “The world needs Real Zero now. Fortescue can tell you when we’ll eliminate fossil fuels and show you exactly how. Every industrialist should match us.”

Fortescue told the event that Fortescue’s climate transition plan should be considered a gold-standard example of the level of corporate ambition required to accelerate the transition away from fossil fuels, with no carbon offsets.

“There is only one question that companies should be asking themselves – when will they stop burning fossil fuels?” Forrest said.

Forrest’s advocacy is painted as extreme in some quarters, particularly in those industries and lobby groups who fret about going too fast on climate action, mostly out of fear for their short term profits and bonus packages.

And the fossil fuel industry itself – and the political parties it funds – is mortified by the prospect that Forrest might succeed.

And Forrest is gaining traction because he is able to show that you can go green and make money at the same time. The technologies exist, he says, at least for 90 per cent of his company’s ambition.

And his drive has already galvanised iron ore competitors Rio Tinto and BHP into action, even if they trail on ambition and still rely on their “net zero” targets. Rio boss Jakob Stausholm even posted his congratulations on a LinkedIn post on Wednesday.

The three mining giants are now leading the push to transform the Pilbara iron ore province, one of the country’s richest economies, from near total dependence on gas and diesel to a region powered by renewables – despite the reticence and skepticism of Australia’s richest person and fellow iron ore magnate Gina Rinehart.

Forrest is urging the federal government to “re-purpose” fossil fuel subsidies to level the playing field for first movers in decarbonisation and to incentivise others in the industry to transition more rapidly.

It says it will re-invest what it receives through Australia’s diesel fuel rebates, in addition to its own capital, to finance its green energy transition.

Most of its heavy mining equipment – haul trucks, dozers and excavators – are scheduled to be replaced before 2030 and Fortescue says it is choosing to replace those end-of-life assets with green assets.

Half of its scope 1 emissions comes from HME, and it will purchase of 360 battery electric haul trucks which come in at 240 tonnes each, and whose 1.8 MWh batteries will be charged, in less than 30 minutes, by Fortescue’s newly developed 6 MW chargers, as well as 60 battery electric dozers and 55 electric excavators.

Fortescue’s Climate Transition Plan estimates that the first fully electric mine site will be complete by 2027.

It is also investing heavily in stationary power, with the newly completed 100 MW North Star solar farm to be followed by a 130 MW solar project at Christmas Creek. All up, it plans more than one gigawatt of solar, nearly one gigawatt of wind and 4,500 GWh of battery storage.

“We have over 800 small diesel gen-set units in our business,” it writes. “Our intention is to replace these with green solutions by 2030, including by connecting the asset they are powering, such as dewatering pumps, into our electrical infrastructure.”

Work continues to decarbonising trains, with a new partnership announced with Downer for the development of battery electric trains, and the report still holds out hope that by 2030 the promised “infinity train”, which will use gravity regeneration with no additional charging, will also be in operation.

“For some assets where the asset life is expected to extend beyond 2030, we are evaluating opportunities to retrofit these assets with green powertrains,” the document says.

“For example, for our mainline rail locomotives, we are looking to retrofit the diesel engine with a battery-electric solution.

“Some of our existing assets that support our existing fossil fuel electricity network can be reused in our
future renewable energy system, such as our high voltage transmission lines connecting the Solomon
gas-fired power station to Iron Bridge.

Similarly, we are assessing options to convert this power station to run on green fuel, such as green ammonia, to support our decarbonised power system.

“There will, however, be a small number of assets that are not at end of life prior to 2030 and cannot be reused as part of our decarbonised operations, such as diesel storage facilities.

“We will develop strategies to retire these assets incorporating economic, environmental and social considerations. We see this is a useful area for collaboration among high- ambition industrial actors as transition planning unfolds over the coming years.”

.