Real Zero

We’re part of the problem.

We don’t shy away from the fact that we are a heavy emitter. In fact, every year we emit 2.5 million tonnes of CO2 equivalent into the atmosphere from our Australian iron ore operations and Fortescue marine vessels. This is why we have committed to eliminate fossil fuels with a target to achieve Real Zero terrestrial emissions (Scope 1 and 2) by 2030, without carbon offsets.

Is Real Zero just corporate spin?

Real Zero is exactly what it sounds like. It means eliminating emissions without any offsets to get to zero. No offsets, no sneaky carbon accounting and no excuses. We are going to replace all of our fossil fuels with green energy.

This is a different approach to Net Zero, where carbon credits or offsets are being used to reduce emissions on paper - not in practice. Net Zero is widely used around the world and we have a problem with it, because it is not real.

Achieving Real Zero by 2030

We have identified preferred solutions to eliminate approximately 90% of our CO2 equivalent terrestrial emissions associated with our Australian iron operations by 2030. In September 2022, Fortescue committed US$6.2 billion dollars to achieve this plan.

By 2030, decarbonisation will allow us to save over 700 million litres of diesel, and 15 million GJ of gas and avoid 3 million tonnes of CO2 equivalent emissions each year. This will generate significant cost savings for our business – for example in FY23, we spent over US$560 million on diesel and gas. We have already stopped buying voluntary carbon offsets which have been shown to be troubled by extensive concerns about quality and an ability to achieve a real reduction in emissions. Further details on our we are eliminating emissions are outlined in our annual Climate Change Report.

We are working hard to identify and evaluate different technology options to eliminate the final 10% of emissions and remain on track to achieve real zero by 2030.

In our work to move beyond fossil fuels, we are also creating new global opportunities for green iron, green steel, green hydrogen, and green ammonia.

How we’re doing it

We have a costed plan to decarbonise our operations by investing in zero emissions mobility and shipping, and renewable energy and battery storage. This includes building stationary power that will use wind and solar to power our operations and converting our haul trucks and other heavy mobile equipment to be zero emissions.

The green mining fleet of the future

To achieve Real Zero, we are investing in zero emissions technologies to turn our mining fleet green. We have already developed the world’s first battery electric haul truck prototype which is powered by a 1.4MWh battery, developed in house by Fortescue WAE. The truck can be charged in just 30 minutes using our 3MW fast charger.

We also have our first electric excavator operational in the Pilbara, powered by a 6.6kV substation and more than 2km of high voltage trailing cable.

Green Rail

Fortescue’s rail operations use 90 million litres of diesel every year.

Our rail teams are developing a range of options to decarbonise, including a regenerating battery electric locomotive that uses the gravitational energy from Fortescue’s downhill sections of rail to recharge and eliminate the need for diesel power. We are also investigating other solutions such as ammonia substitution – which we have successfully trialled.

Green Shipping

90% of the worlds shipping trade accounts for 700 mt of global emissions¹.

In 2023 we proved that shipping can be green with the successful launch of the Green Pioneer at COP28 - with two of its four engines converted to run on dual-fuel ammonia and diesel mix.

More work is being done to demonstrate the potential of green ammonia and other green energies for our future fleets, setting an example for this heavy emitting industry.

Green Power

Renewables will account for over 42% of global electricity generation this year ², so decarbonising quickly will allow us to compete in an ever-changing economic backdrop.

We anticipate we will need 2-3GW of renewable energy and battery storage to power our Pilbara operations.

While we’re progressing feasibility studies for wind and solar generation sites, the first of these - a 100MW solar farm - is already under construction at North Star Junction, near our Iron Bridge operations.

Bringing the world along with us

We don’t just want to eliminate emissions from our operations, we want to help eliminate fossil fuel from our planet.

That’s why we have green energy projects under development globally from Norway, to Kenya, and the United States to Brazil.

We are also developing electrolyser technologies. Electrolysers use electricity to split water into hydrogen and oxygen and is a critical technology in the production of green hydrogen.

We have established the building blocks of a new global renewable energy value chain by developing breakthrough green technology for trucks, trains, planes, ships, electrolysers, solar, cables, wind, batteries, hydrogen fuel cells and the digital industry.

Pioneering a new world of energy.

¹ IOP Publishing’s journal: Environmental Research: Infrastruacture and Sustainability Green ammonia could decarbonise 60% of global shipping when offered at just 10 regional fuel ports - IOP Publishing

² IEA – Renewables 2023, IEA. International Energy Agency Electricity – Renewables 2023 – Analysis - IEA