Australian iron ore miner Fortescue Metals Group’s chairman and founder Andrew Forrest has stated that the company will begin building Australia’s first green steel pilot plant this year to fight climate change, followed by a commercial plant in the Pilbara region in the next few years.
Mr. Forrest stated that there are two ways for green steel production. The first way is to replace coal with hydrogen, separately adding carbon to strengthen the steel. The second way is to scrap the blast furnace altogether and use only renewable electricity in steelmaking.
Stating that the company generates over two million mt of greenhouse gas every year, the chairman noted that Australia produces over 40 percent of the world’s iron ore and that its potential green energy and hydrogen resources are immeasurable. “If Australia were to capture just 10 percent of the world’s steel market, we could generate well over 40,000 jobs - more than what’s required to replace every job in the coal industry,” he said.
Meanwhile, in December last year, Fortescue recorded a net profit of over $940 million, amid higher iron ore prices.