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Australia’s green iron ore to get stronger traction

Iron Ore

After its debut in July 2021, Australia gets ambitious about IMO 2030

Fortescue Metals Group (FMG) debuted its first lot of green iron and cement in its bid to be an elite in the renewable energy market. Elizabeth Gaines, FMG’s Chief Executive said the company was quickly moving from being a major consumer of fossil fuel to a top clean and renewable energy exporter.

Dethroning conventional iron ore
Australia in its own right tops the world iron ore production ranking to cater to the huge demand for steel manufacturing. However, with IMO 2030 inching closer, FMG’s subsidiary, Fortescue Future Industries (FFI) has gone as far as to produce high purity iron with 97 per cent composition without using coking coal and at low temperatures. However, FFI stressed more tests are needed to prove its economic viability.

Gaines added, “We set out to test the hypothesis that there was sufficient 100 per cent renewable green energy, hydrogen, ammonia and industrial manufacturing potential for products, such as green cement, fertiliser, iron and steel to fully satisfy the world’s need. We have confirmed our hypothesis.”

If FFI succeeds in this mission, it might well become the official first green iron ore producer. Fortescue’s founder, Andrew Forrest forecasted global conversion to green energy and products would be intense. He had quoted forecasts that assumed hydrogen produced from renewable energy would only become commercially viable in the 2030s. This projection stood corrected from FFI’s success. Forrest added there is a line of global investors from debt, equity, and others – ready to invest alongside a corporation of Fortescue’s reputation.

Pair that with China’s goal to reduce carbon emission through limiting steel production, FFI may as well reset the whole iron ore arena. Australia used to be China’s top supplier for iron ore till the bilateral conflict which significantly reduced the former’s exports. However, China has been actively importing iron ore yet limiting steel output. On the flip side, at no point has it implied any impact on the country’s shipbuilding momentum. The likely sector to be affected would be construction. With green iron ore, Australia may reclaim its position as China’s top supplier again – provided the latter is willing to put differences aside for IMO 2030.

Marine Online News Team
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