Fortescue ups green energy bet to power data centres

Fortescue will spend $1 billion (US$680m) to develop new green energy infrastructure, in a bid to meet the growing demand for green power from the industry, especially data centres.

The mining giant said it will rapidly develop the 200MW Pilbara green energy project, developing additional renewable energy beyond its Real Zero goal of zero emissions at its iron ores by 2030.

It aims to reach zero emissions across its scope 1 and 2 emissions by 2030. Scope 1 emissions are directly controlled by a company, whereas scope 2 and 3 are indirect emissions that are consequences of the activities of the company, but occur from sources not owned or controlled by it.

It will also deliver a fully integrated, off-grid renewable energy system and large-scale battery storage and firming capability, to be completed by 2028.

This investment is on top of its $9.7 billion (US$6.2bn) spending plan on the decarbonisation program.

"Fortescue is already demonstrating in the Pilbara that heavy industry can operate on a fully integrated renewable grid - eliminating fossil fuels while improving costs, reliability and control," Fortescue executive chair Andrew Forrest said.

"We are now extending this model to new customers, particularly data centres, helping meet one of the fastest growing source of demand in the world."

The World Benchmarking Alliance (WBC) gives Fortescue an ACT (assessing low-carbon transition) core rating of "C" - inconsequential planning.

The score indicates Fortescue meets conditions for a higher score as it provides evidence that decarbonisation actions are considered across near and long term, while also implementing measures to influence suppliers and investors to reduce upstream greenhouse emissions.

"However, there is no evidence that the company is mobilising low-carbon investments through capital expenditure (CapEx) or R&D. The company's Scope 1 and 2 and Scope 3 emissions data for the period 2019-2024 are either not reported consistently for at least four years, or its emissions trajectory is significantly misaligned with the reductions required under the relevant 1.5 °C sectoral pathway," WBC wrote in its assessment.

WBC said if the firm disclosed further information on investments and "consistent emissions time series that demonstrate significant emissions reductions", it would move the company to a higher total score.

Green grid forms the backbone of Fortescue's Real Zero target, which aims to achieves 1.2GW of solar, 600MW of wind, 4-5GWh battery storage and 620km of transmission lines.

"This is about replicating our decarbonisation green grid, delivering new green electrons at a scale and speed to market not able to be replicated by fossil fuel," Forrest said.

He added this enables a pathway for new industries to operate fossil fuel free, cheaper and faster than traditional alternatives.

Fortescue said it will develop this project with the government and traditional custodians.