Fortescue expects to start producing “green metal” next year from a US$50 million iron processing plant at its Christmas Creek Green Energy Hub in Western Australia’s north.
The iron ore major defines green metal as the iron produced from iron ore processed using renewable energy and with “near zero” carbon emissions.
Its new electric smelting furnace plant is expected to produce more than 1500 tonnes per annum of green iron using hydrogen from the largest facility of its type in Australia. Fortescue says the green hydrogen plant can produce about 530kg of hydrogen gas per day, or circa-195 tonnes annually. Powered partly by solar during the day, the plant comprises a gaseous hydrogen refuelling station (HRS) to refuel a fleet of 10 fuel cell electric vehicle hydrogen-powered coaches.
The Green Energy Hub also has a hydrogen liquefaction facility, liquid hydrogen storage, and a liquid-hydrogen refuelling station.
New Zealand-based Fabrum collaborated on the design, build and commissioning of the liquid hydrogen plant, which its CEO Dr Ojas Mahapatra said marked its entry into the mining and minerals industry.
“This is the first project we’ve collaborated on with Fortescue, an investor in Fabrum, and it highlights the great opportunities we see to help each other be successful in the future,” Mahapatra said.
“It’s an exciting time for Fabrum as we continue to grow rapidly to meet increasing global demand for hydrogen production systems and other technologies.”
Fortescue executive chairman Dr Andrew Forrest said at a launch event in the Pilbara the start of the green iron and hydrogen plants was a pivotal time in the company’s journey to build a green metal supply chain.
“Iron and steel are the backbone of our infrastructure, however traditional iron and steel production processes are among the largest sources of greenhouse gas emissions,” he said.
“By rethinking the entire iron and steel value chain we can produce an entirely new, green industry here in Australia.”
Fortescue Metals CEO Dino Otranto said hydrogen and fuels made using renewable energy would play a key role to in decarbonising mining, “whether it’s in buses, heavy mining equipment such as haul trucks and excavators, or producing green iron”.
“This renewable hydrogen plant is versatile, enabling us to produce gaseous and liquid hydrogen to be used to power our mining equipment prototypes, while also providing the added benefit of refuelling our fleet of coaches at Christmas Creek,” he said.
The Green Energy Hub also hosts Fortescue’s prototype battery electric haul truck and a 3MW fast charger prototype.
Fortescue produced nearly 192 million tonnes of iron ore from its Pilbara operations in the 12 months to June 30 this year.
Otranto said on a call with analysts and media last month to talk about FY24 production results that pivoting to producing green iron metal “is the next step for us and we see a massive potential in building a green iron industry out of Australia, supplying China”.
He said from China announcements in the country that week had reaffirmed its national commitment to halve emissions from coalfired power plants by 2027.
“By the end of the decade, this will mean all coal power units will be capable of co-firing more than 10% green ammonia – an incredible leap forward,” Otranto said.
“During the quarter, Premier Li visited our green technology and test facility in Perth, which marked a historic moment in our two-decade long business relationship with China.
“I not only remain confident on 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.”
