Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive: Australia must commit to carbon cuts to keep green energy advantage -Fortescue's Forrest

Stock MarketsOct 18, 2021 09:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Andrew Forrest, chairman of Fortescue Metals Group, speaks during a media conference in Sydney, Australia, July 28, 2015. REUTERS/David Gray

By Sonali Paul and Melanie Burton

MELBOURNE (Reuters) - Australia risks losing its advantage in the green energy revolution if its leaders don't promptly commit to cutting carbon emissions by 2050, the country's richest man, Fortescue Metals Group (OTC:FSUGY) founder Andrew Forrest said on Monday.

Forrest, who grew Fortescue from a minnow to rival the world's biggest mining giants in less than two decades, has spearheaded his company's global green energy drive, signing deals from Brazil to Indonesia to Democratic Republic of Congo.

The company aims to build a 250 megawatt hydrogen electrolyser at Bell Bay in Tasmania -- 25 times the size of the biggest existing electrolysers in the world -- for less than A$1 billion ($740 million), Forrest said, putting a price on the project for the first time.

Fortescue is ready to make a final investment decision this year, as promised, but is waiting for support from the state government before going ahead with the project.

While Forrest told Reuters that Australia is the best place to realise his green vision, the country's failure to commit to a policy to cut emissions is risking that advantage.

"I would say 2050 neutrality is a certainty for Australia. If we support it by COP26 the dividend flow to regional Australia will be substantial. If we don't support it by COP26, the future will remain uncertain," Forrest said, referring to the COP 26 climate conference in Glasgow at the end of October.

"The renewable energy, green hydrogen, green ammonia, green electricity industry is very, very mobile," he said.

"It is where the will is strongest - they will be the first to be developed."

Australia's energy policy is again in the spotlight as Prime Minister Scott Morrison prepares to attend the conference, where global leaders will meet to set further climate goals to follow on from the landmark 2015 Paris accord.

But Morrison is short on updated climate ambitions to bring to the table given his reliance on the junior partner in Australia's coalition government which said it would not be rushed into a decision on whether to support a target of net zero emissions by 2050.

The Nationals who represent coal and farming heartlands worry that stronger emissions targets will cost jobs. Coal is the country's second biggest export earner.

But Forrest, speaking to Reuters from London, said that rural Australians were set to be the biggest winners in the move to green energy - if agreements are made in time.

"I have demonstrated investment into the regions despite the fact Australia is dragging the chain," Forrest told Reuters.

Fortescue is investigating the potential to convert top Australian fertiliser maker Incitec Pivot's Brisbane ammonia plant to use green hydrogen as a feedstock instead of natural gas, with an on-site electrolysis plant that will produce up to 50,000 tonnes of hydrogen a year.

The plant's future had been under threat due to soaring gas prices, however setting up a green hydrogen production site to feed the existing plant could save 400 jobs and create many more, Forrest said.

At the same time, the product from the plant will be cheaper for local farmers.

"So farmers in Australia long into the future can plan for the next season, or even for the next generation ... knowing that fertilisers are coming from a hydrogen molecule that is infinite," Forrest said.

Exclusive: Australia must commit to carbon cuts to keep green energy advantage -Fortescue's Forrest
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Catholic Man
CatholicMan Oct 18, 2021 10:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
silliness
House Party
House Party Oct 18, 2021 10:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes that is good news 🙏
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email