Fortescue (ASX:FMG) to execute Qld hydrogen investment

Fortescue’s (ASX:FMG) Future Industries (FFI) is set to build a renewable industry and equipment manufacturing centre at Gladstone, Queensland.

FFI’s global Green Energy Manufacturing centre (GEM) will be the first in a series of centres that are aimed to transform regional Australia through the manufacture of equipment critical to the generation of renewable energy and green hydrogen.

Subject to customer demand, the mining giant said the investment could be more than $900 million (US$650 million), with the initial electrolyser investment to be around $114 million (US$83 million). The GEM will include the manufacture of wind turbines, solar photovoltaic cells, electrolysers, long-range electric cabling, electrification systems and associated infrastructure.

“FFI’s goal is to become the world’s leading, fully renewable energy and green products company, powering the Australian economy and creating jobs for Australia as we transition away from fossil fuels, ” said FFI CEO, Julie Shuttleworth. 

Stage one of the six-stage project will create Australia’s first multi-gigawatt-scale electrolyser factory, with an initial capacity of 2 gigawatts per annum, more than double current production globally. Construction of GEM will commence in February next year. 

“This initiative is a critical step in Fortescue’s transition from a significant and successful pure play iron ore producer, to a significant and successful integrated renewables and green resources powerhouse,” said FFI chairman, Dr Andrew Forest. 

Shares in Fortescue Metals (ASX:FMG) are trading 4.3 per cent higher at $14.86.