Latest news with #Fortescue
Nikkei Asia
3 days ago
- Business
- Nikkei Asia
Australia's 'green' iron debate grows as China targets steel emissions
SYDNEY -- Debate is heating up in Australia over how the world's largest supplier of iron ore and metallurgical coal should respond to a growing push for more environmentally friendly metals, especially in China, the country's biggest customer. Last week, Andrew Forrest, boss of the country's third-largest iron ore miner Fortescue, warned rivals that the Pilbara region -- the heartland of the country's iron industry -- risked becoming a "wasteland" if the sector did not adapt to China's move to close down blast furnaces and adopt cleaner steelmaking alternatives using Brazilian or African ores.
Morocco World
3 days ago
- Business
- Morocco World
Xlinks Pauses UK-Morocco Undersea Power Cable Project Amid Regulatory Delays
Doha – Xlinks, the British company behind the ambitious project to connect Morocco and the United Kingdom via undersea power cables, has temporarily paused its Development Consent Order (DCO) examination process. In a May 14 letter to the UK Planning Inspectorate, the company requested this halt while awaiting a crucial decision on its Contract for Difference (CfD) from the UK Department of Energy Security and Net Zero. The pause comes as the company seeks financial certainty through a CfD that would guarantee fixed electricity prices for 25 years. According to company sources close to the matter, this is 'a pause in the DCO process, not a suspension,' aimed at preventing 'misalignment of different project development stages.' The main issue holding up the project is the need for price certainty. Xlinks is seeking a guaranteed price of £77 per megawatt-hour for solar energy and £87 for wind energy produced in Morocco's Guelmim-Oued Noun region. Without this financial commitment, investors are reluctant to move forward with the necessary funding. 'Without this clear commitment on a stable price, Xlinks' financial partners are hesitant to inject the necessary investments,' the company stated. Dave Lewis, Xlinks' chairman, has expressed frustration over the delays and frequent ministerial changes in the UK's energy department. In a January interview with Bloomberg, Lewis noted that the undersea cable project could generate up to £24 billion (MAD 300 billion) in investments, with approximately £5 billion in Great Britain alone. The project was designated as a 'nationally significant infrastructure project' by the British government in 2023, highlighting its strategic importance to the UK's energy security. It aims to provide power to nine million British households and reduce CO2 emissions from the UK energy sector by 10%. Read also: Former UK Minister: Morocco Key Player in Britain's Clean Energy Mission The proposed 3,900-kilometer cable would traverse Portuguese, Spanish, and French coastal waters to connect Morocco's renewable energy facilities with the British grid. If completed, it would deliver 3.6 gigawatts of electricity generated from solar parks, wind farms, and battery storage systems. Facing continued delays, Xlinks has begun exploring alternatives. Lewis told The Telegraph in early April that if the British government's response was further delayed, shareholders might redirect resources toward other projects under development, including a potential Morocco-Germany connection. The company opted for direct negotiations with the government rather than going through a tender process, which has contributed to the delays. Political instability in the UK has further complicated negotiations. Meanwhile, competition is emerging. Australian group Fortescue is developing a similar 100-gigawatt electrical connection project between North Africa and the European Union. Fortescue's chairman, Andrew Forrest, has confirmed discussions with Ed Miliband, the British Secretary of State for Energy Security, and various European governments about installing multiple undersea cables that could transport up to 500 terawatt-hours (TWh) of electricity annually—nearly equivalent to Germany's total annual consumption. Even with the most favorable outcome, Xlinks' complex authorization process is unlikely to conclude before 2026. While the company targets a 2030 launch date, effective service might not begin until 2031 at the earliest—a timeline that has investors increasingly concerned. The project has already received authorization from the Moroccan side, but still requires approvals from France, Spain, and Portugal, which the cables would cross. Tags: UK MoroccoXlinks project
The Age
4 days ago
- Business
- The Age
Twiggy drops off as three West Australians make AFR's Rich List top 10
West Australian mining billionaire Andrew Forrest has fallen out of the Australian Financial Review Rich List top 10 for the first time in more than 15 years. The iron ore tycoon was ranked the richest man in Australia from 2020 to 2023, before beginning to slide down the rankings following his split from wife, Nicola, and the dividing of their shared fortune in 2023. Nicola Forrest remains in the top 10, ranked ninth with an estimated fortune worth $12.8 billion, due to holding slightly more of the family's Fortescue shares than her estranged husband. Fellow WA mining magnate Gina Rinehart has held her position as the richest Australian for the sixth year in a row despite her fortune shrinking slightly from $40.6 billion in 2024 to $38.1 billion this year due to falling iron ore prices. Rinehart's Hancock Prospecting is the country's largest private mining company, with its Roy Hill mine in the Pilbara its most valuable asset. Rounding out the West Australian contingent in the top 10 was media mogul and Seven Group Holdings boss Kerry Stokes with an estimated value of $12.7 billion – a figure which has nearly doubled since 2020, when his worth was forecast to be around $6.3 billion. This year marks Stokes' return to the top 10 after last appearing on the list five years ago. Meanwhile, one West Australian was also among the 10 debutants to feature on the list for the first time this year.
Sydney Morning Herald
4 days ago
- Business
- Sydney Morning Herald
Twiggy drops off as three West Australians make AFR's Rich List top 10
West Australian mining billionaire Andrew Forrest has fallen out of the Australian Financial Review Rich List top 10 for the first time in more than 15 years. The iron ore tycoon was ranked the richest man in Australia from 2020 to 2023, before beginning to slide down the rankings following his split from wife, Nicola, and the dividing of their shared fortune in 2023. Nicola Forrest remains in the top 10, ranked ninth with an estimated fortune worth $12.8 billion, due to holding slightly more of the family's Fortescue shares than her estranged husband. Fellow WA mining magnate Gina Rinehart has held her position as the richest Australian for the sixth year in a row despite her fortune shrinking slightly from $40.6 billion in 2024 to $38.1 billion this year due to falling iron ore prices. Rinehart's Hancock Prospecting is the country's largest private mining company, with its Roy Hill mine in the Pilbara its most valuable asset. Rounding out the West Australian contingent in the top 10 was media mogul and Seven Group Holdings boss Kerry Stokes with an estimated value of $12.7 billion – a figure which has nearly doubled since 2020, when his worth was forecast to be around $6.3 billion. This year marks Stokes' return to the top 10 after last appearing on the list five years ago. Meanwhile, one West Australian was also among the 10 debutants to feature on the list for the first time this year.
The Advertiser
7 days ago
- Business
- The Advertiser
Australia urged to spend big while green iron is hot
Australia has a unique opportunity to trade its dirty coal and gas industry for cleaner green iron market and make four times the revenue from its export by 2060, a study suggests. But there are hurdles to producing green iron in Australia, the report says, and government and businesses need to invest to beat rival nations racing to cash in on the opportunity. The Superpower Institute released the findings in its Green Iron Plan for Australia report on Monday, analysing potential restrictions and opportunities to establishing a local industry. The research comes three months after the government announced a $1 billion investment in green iron production, including $500 million to support existing and new developments. Green iron is produced using renewable energy resources such as hydrogen and electricity generated by the sun and wind rather than coal or gas, and has the potential to cut 90 per cent of emissions from the steelmaking process. Australia is considered a strong potential green iron producer as it is the world's biggest iron ore exporter, but the report identified three obstacles to its production. Early investors were not being given enough financial support, infrastructure to support its production was lacking, and the absence of an international carbon price made it hard to compete with fossil fuel-based iron, the report found. If these issues were addressed, Australia could have a clear pathway to producing green iron, cutting emissions and taking advantage of its natural resources, Superpower Institute chair Rod Sims said. "If anyone is going to make green iron, it's going to be Australia," he told AAP. "Every international study I've seen - and I've seen a few - says that if you want green iron, Australia is either one of the small number of top places or is the best place to do it." Introducing a green iron production tax credit of $170 per tonne could temporarily address the lack of a carbon price, the report found, while grants of up to 30 per cent could help to establish early green iron projects. Other recommendations include introducing a green hydrogen certification scheme and researching trade opportunities. Australia could generate up to $386 billion a year from green iron by 2060, the report found. Mr Sims said the nation should aim to have between two and four projects in operation by 2030. "Australia is the world's largest producer of gas and coal combined but they will go down as the world moves to net zero, therefore you need a foot in the other camp," he said. Small green iron plants are already planned in countries including Germany, Sweden and Namibia. Green iron projects in Australia include Fortescue's Christmas Creek project, expected to begin production before the end of 2025, and a $3.5 billion Gladstone project backed by Quinbrook Infrastructure Partners. Government commitments to green metals include $750 million from the Future Made in Australia fund and $500 million from the Green Iron Investment Fund. Productivity Assistant Minister Andrew Leigh said the government would seek to make strategic investments to help establish the industry. "No one thinks public investment is a substitute for private capital," he said. "There are moments, especially during structural transitions, when governments can play a useful role in reducing uncertainty, addressing market failures, and de-risking early stage ambition." Australia has a unique opportunity to trade its dirty coal and gas industry for cleaner green iron market and make four times the revenue from its export by 2060, a study suggests. But there are hurdles to producing green iron in Australia, the report says, and government and businesses need to invest to beat rival nations racing to cash in on the opportunity. The Superpower Institute released the findings in its Green Iron Plan for Australia report on Monday, analysing potential restrictions and opportunities to establishing a local industry. The research comes three months after the government announced a $1 billion investment in green iron production, including $500 million to support existing and new developments. Green iron is produced using renewable energy resources such as hydrogen and electricity generated by the sun and wind rather than coal or gas, and has the potential to cut 90 per cent of emissions from the steelmaking process. Australia is considered a strong potential green iron producer as it is the world's biggest iron ore exporter, but the report identified three obstacles to its production. Early investors were not being given enough financial support, infrastructure to support its production was lacking, and the absence of an international carbon price made it hard to compete with fossil fuel-based iron, the report found. If these issues were addressed, Australia could have a clear pathway to producing green iron, cutting emissions and taking advantage of its natural resources, Superpower Institute chair Rod Sims said. "If anyone is going to make green iron, it's going to be Australia," he told AAP. "Every international study I've seen - and I've seen a few - says that if you want green iron, Australia is either one of the small number of top places or is the best place to do it." Introducing a green iron production tax credit of $170 per tonne could temporarily address the lack of a carbon price, the report found, while grants of up to 30 per cent could help to establish early green iron projects. Other recommendations include introducing a green hydrogen certification scheme and researching trade opportunities. Australia could generate up to $386 billion a year from green iron by 2060, the report found. Mr Sims said the nation should aim to have between two and four projects in operation by 2030. "Australia is the world's largest producer of gas and coal combined but they will go down as the world moves to net zero, therefore you need a foot in the other camp," he said. Small green iron plants are already planned in countries including Germany, Sweden and Namibia. Green iron projects in Australia include Fortescue's Christmas Creek project, expected to begin production before the end of 2025, and a $3.5 billion Gladstone project backed by Quinbrook Infrastructure Partners. Government commitments to green metals include $750 million from the Future Made in Australia fund and $500 million from the Green Iron Investment Fund. Productivity Assistant Minister Andrew Leigh said the government would seek to make strategic investments to help establish the industry. "No one thinks public investment is a substitute for private capital," he said. "There are moments, especially during structural transitions, when governments can play a useful role in reducing uncertainty, addressing market failures, and de-risking early stage ambition." Australia has a unique opportunity to trade its dirty coal and gas industry for cleaner green iron market and make four times the revenue from its export by 2060, a study suggests. But there are hurdles to producing green iron in Australia, the report says, and government and businesses need to invest to beat rival nations racing to cash in on the opportunity. The Superpower Institute released the findings in its Green Iron Plan for Australia report on Monday, analysing potential restrictions and opportunities to establishing a local industry. The research comes three months after the government announced a $1 billion investment in green iron production, including $500 million to support existing and new developments. Green iron is produced using renewable energy resources such as hydrogen and electricity generated by the sun and wind rather than coal or gas, and has the potential to cut 90 per cent of emissions from the steelmaking process. Australia is considered a strong potential green iron producer as it is the world's biggest iron ore exporter, but the report identified three obstacles to its production. Early investors were not being given enough financial support, infrastructure to support its production was lacking, and the absence of an international carbon price made it hard to compete with fossil fuel-based iron, the report found. If these issues were addressed, Australia could have a clear pathway to producing green iron, cutting emissions and taking advantage of its natural resources, Superpower Institute chair Rod Sims said. "If anyone is going to make green iron, it's going to be Australia," he told AAP. "Every international study I've seen - and I've seen a few - says that if you want green iron, Australia is either one of the small number of top places or is the best place to do it." Introducing a green iron production tax credit of $170 per tonne could temporarily address the lack of a carbon price, the report found, while grants of up to 30 per cent could help to establish early green iron projects. Other recommendations include introducing a green hydrogen certification scheme and researching trade opportunities. Australia could generate up to $386 billion a year from green iron by 2060, the report found. Mr Sims said the nation should aim to have between two and four projects in operation by 2030. "Australia is the world's largest producer of gas and coal combined but they will go down as the world moves to net zero, therefore you need a foot in the other camp," he said. Small green iron plants are already planned in countries including Germany, Sweden and Namibia. Green iron projects in Australia include Fortescue's Christmas Creek project, expected to begin production before the end of 2025, and a $3.5 billion Gladstone project backed by Quinbrook Infrastructure Partners. Government commitments to green metals include $750 million from the Future Made in Australia fund and $500 million from the Green Iron Investment Fund. Productivity Assistant Minister Andrew Leigh said the government would seek to make strategic investments to help establish the industry. "No one thinks public investment is a substitute for private capital," he said. "There are moments, especially during structural transitions, when governments can play a useful role in reducing uncertainty, addressing market failures, and de-risking early stage ambition." Australia has a unique opportunity to trade its dirty coal and gas industry for cleaner green iron market and make four times the revenue from its export by 2060, a study suggests. But there are hurdles to producing green iron in Australia, the report says, and government and businesses need to invest to beat rival nations racing to cash in on the opportunity. The Superpower Institute released the findings in its Green Iron Plan for Australia report on Monday, analysing potential restrictions and opportunities to establishing a local industry. The research comes three months after the government announced a $1 billion investment in green iron production, including $500 million to support existing and new developments. Green iron is produced using renewable energy resources such as hydrogen and electricity generated by the sun and wind rather than coal or gas, and has the potential to cut 90 per cent of emissions from the steelmaking process. Australia is considered a strong potential green iron producer as it is the world's biggest iron ore exporter, but the report identified three obstacles to its production. Early investors were not being given enough financial support, infrastructure to support its production was lacking, and the absence of an international carbon price made it hard to compete with fossil fuel-based iron, the report found. If these issues were addressed, Australia could have a clear pathway to producing green iron, cutting emissions and taking advantage of its natural resources, Superpower Institute chair Rod Sims said. "If anyone is going to make green iron, it's going to be Australia," he told AAP. "Every international study I've seen - and I've seen a few - says that if you want green iron, Australia is either one of the small number of top places or is the best place to do it." Introducing a green iron production tax credit of $170 per tonne could temporarily address the lack of a carbon price, the report found, while grants of up to 30 per cent could help to establish early green iron projects. Other recommendations include introducing a green hydrogen certification scheme and researching trade opportunities. Australia could generate up to $386 billion a year from green iron by 2060, the report found. Mr Sims said the nation should aim to have between two and four projects in operation by 2030. "Australia is the world's largest producer of gas and coal combined but they will go down as the world moves to net zero, therefore you need a foot in the other camp," he said. Small green iron plants are already planned in countries including Germany, Sweden and Namibia. Green iron projects in Australia include Fortescue's Christmas Creek project, expected to begin production before the end of 2025, and a $3.5 billion Gladstone project backed by Quinbrook Infrastructure Partners. Government commitments to green metals include $750 million from the Future Made in Australia fund and $500 million from the Green Iron Investment Fund. Productivity Assistant Minister Andrew Leigh said the government would seek to make strategic investments to help establish the industry. "No one thinks public investment is a substitute for private capital," he said. "There are moments, especially during structural transitions, when governments can play a useful role in reducing uncertainty, addressing market failures, and de-risking early stage ambition."
