Fortescue to divert carbon offset funds to decarbonization

The world’s fourth-largest iron ore producer has several projects lined up as it looks to rapidly develop technology to produce green hydrogen. (Image courtesy of Fortescue Metals

Australia’s Fortescue said on Friday it will divert funds that were allocated to carbon offsets towards decarbonization in a bid to achieve “Real Zero” by 2030.

The world’s fourth-largest iron ore miner plans to no longer buy carbon offsets.

Fortescue, which aims to position itself as a global green energy company, reorganized its business this year into two divisions under energy and metals.

The company also said it will eliminate million litres of diesel it uses per year, rather than offsetting them.

“Our short-term target is for our emissions to reach their peak by 2025/26 because of a new mine coming on board” Metals CEO Dino Otranto said.

“(Emissions) will then significantly decline in 2027/28 as all of the green technology and renewable energy that we are investing in right now kicks in,” Otranto added.

Fortescue also expects to finalize investment decision on additional three solar farms by fiscal year 2025.

(By Nausheen Thusoo; Editing by Savio D’Souza and Dhanya Ann Thoppil)


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