Latest news with #PEM50Project
Sky News AU
5 days ago
- Business
- Sky News AU
Andrew Forrest's Fortescue scraps Gladstone, Arizona green hydrogen projects, blames Donald Trump for US closure
A major Australian energy and mining company has scrapped two massive green hydrogen projects. Andrew 'Twiggy' Forrest's Fortescue on Thursday informed shareholders the company was ditching its Arizona Hydrogen Project in the United States and its PEM50 Project in Queensland's Gladstone 'following a detailed review'. 'An assessment is underway to repurpose the assets and the land,' the company said. The projects' failure will blow about a US$150m ($227m) hole in the energy and mining giant's financial results. On the US project's failure, Fortescue chief executive of growth and energy Gus Pichot told analysts the shift away from green energy under Trump hurt the project's viability. 'A shift in policy priorities away from green energy has changed the situation in the US,' Mr Pichot said. 'The lack of certainty and a step back in green ambition has stopped the emerging green energy markets, making it hard for previously feasible projects to proceed. 'As a result, we cannot proceed with our investments as they stand, and will explore future opportunities for our site in Arizona.' While the company blamed the collapse on the shift in policy from the Trump administration, the Albanese government has earmarked billions of taxpayer dollars into green hydrogen in Australia. The recent shift away from green hydrogen comes as a blow to Labor's net-zero plans, which include a Hydrogen Production Tax Incentive as part of its Future Made in Australia Act. More than $6.5 billion will go toward the scheme, which provides $2 per kilogram of renewable hydrogen produced between 2027-28 and 2039-40. The policy came a year after Labor announced $2b towards its Hydrogen Headstart program, which looked to invest in large scale hydrogen projects. Fortescue's Gladstone project was originally slated to produce upwards of two tonnes of green hydrogen each day. The company cut about 90 jobs at the Queensland operation in May as it 'refocused' its efforts into the 'research and development of new technologies', a Fortescue spokesperson said at the time. The plant, which has received about $60m in federal and Queensland government support, was opened 12 months ago before Fortescue mothballed the operation around the time of the job cuts. Despite scrapping two of its biggest green hydrogen projects, Fortescue insists it 'continues to advance its green technology product portfolio'. 'Fortescue's Green Energy project pipeline continues to be progressed and refined in a disciplined manner that reflects global market conditions and policy settings,' a statement from the company reads. Sky News' Business Editor Ross Greenwood said making green hydrogen has 'always been uncompetitive' and noted the announcement did not come as a shock. 'It again shows that even though you may have ideals about green hydrogen (and) how wonderful it is, if these things do not stack up economically … you ain't gonna use it,' Greenwood said on AM Agenda. The shutdowns follow Fortescue revealing 700 redundancies in July 2024 in a sweeping restructure of the company that consolidated its mining and energy arms into one division. Mr Forrest has spent years promoting the benefits of green hydrogen, with the company originally planning on producing 15 million tonnes per year by 2030.
Yahoo
5 days ago
- Business
- Yahoo
Fortescue iron ore shipments rise; scraps US, Aussie green energy projects
(Reuters) -Australia's Fortescue on Thursday posted record fourth-quarter production that helped the miner meet the top end of its full-year guidance, and said it would scrap its U.S. and Australian green energy projects. The Perth-based company said it would not proceed with its Arizona Hydrogen Project in the U.S. and the PEM50 Project in Gladstone, Australia, following a review. It is assessing options to repurpose the land and assets. Fortescue also expects a preliminary pre-tax writedown of about $150 million in its second-half results, linked to spending on the PEM50 Project, electrolyser manufacturing equipment in Gladstone, and engineering costs for the Arizona Hydrogen Project. The company posted quarterly iron ore shipments of 55.2 million metric tons (Mt), up from 53.7 Mt a year earlier and above a Visible Alpha estimate of 52.5 Mt, supported by improved processing of the steel-making commodity. Fortescue, chaired by billionaire founder Andrew Forrest, shipped 198.4 Mt in fiscal 2025 - its best performance in record. Effettua l'accesso per consultare il tuo portafoglio
Reuters
5 days ago
- Business
- Reuters
Fortescue iron ore shipments rise; scraps US, Aussie green energy projects
July 24 (Reuters) - Australia's Fortescue ( opens new tab on Thursday posted record fourth-quarter production that helped the miner meet the top end of its full-year guidance, and said it would scrap its U.S. and Australian green energy projects. The Perth-based company said it would not proceed with its Arizona Hydrogen Project in the U.S. and the PEM50 Project in Gladstone, Australia, following a review. It is assessing options to repurpose the land and assets. Fortescue also expects a preliminary pre-tax writedown of about $150 million in its second-half results, linked to spending on the PEM50 Project, electrolyser manufacturing equipment in Gladstone, and engineering costs for the Arizona Hydrogen Project. The company posted quarterly iron ore shipments of 55.2 million metric tons (Mt), up from 53.7 Mt a year earlier and above a Visible Alpha estimate of 52.5 Mt, supported by improved processing of the steel-making commodity. Fortescue, chaired by billionaire founder Andrew Forrest, shipped 198.4 Mt in fiscal 2025 - its best performance in record.
West Australian
5 days ago
- Business
- West Australian
Fortescue delivers iron ore record but will book $227m impairment after scraping two hydrogen projects
Iron ore is flowing from Fortescue's Pilbara mines at record rates but the green hydrogen side of the global business continues its rout. Fortescue shipped 55.2 million tonnes of iron ore from Port Hedland in the June quarter to finish the 2025 financial year with 198.4mt of exports. The results, predicted by The West Australian , were both a quarterly and yearly record for Fortescue. But the company's ailing green hydrogen hopes have taken another blow. 'Following a detailed review, Fortescue has determined that the Arizona hydrogen project in the United States and PEM50 Project in Gladstone, Australia will not proceed,' it stated on Thursday. 'An assessment is under way to repurpose the assets and the land.' Fortescue expects to book a $US150m ($227m) write-down after scrapping the two projects. More to come . . .
